Combining Monetary and Fiscal Policies to Achieve Full Employment Can

question 62

Multiple Choice

Combining monetary and fiscal policies to achieve full employment can lead to a one-shot improvement in economic growth by

• A) decreasing the gap between actual and potential output.
• B) shifting the production possibilities curve outward.
• C) pushing to a new equilibrium where desired GDP exceeds actual GDP.
• D) reducing government expenditures.
• E) increasing nominal GDP faster than real GDP.

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Definitions:

Emotional Nature

An individual's characteristic way of feeling and expressing emotions.

Racism

Discrimination or prejudice directed against someone of a different race based on the belief that one's own race is superior.

Minimizing

The psychological strategy of downplaying or understating the significance of events or emotions, often as a coping mechanism.

Prejudice

An antipathy or negative feeling, either expressed or not expressed, based on a faulty and inflexible generalization that places a group of people at some disadvantage not merited by their actions.