Suppose the Economy Is in a Recession and the Government

question 57

Multiple Choice

Suppose the economy is in a recession and the government decides it needs to reduce the budget deficit.Other things equal,this would tend to

• A) increase the output gap and make the recession worse.
• B) decrease the output gap and make the recession worse.
• C) help to eliminate the recession, but at the cost of a much higher inflation rate.
• D) keep output from declining further, but increase the real interest rate and the inflation rate.

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Definitions:

Retina

A layer of visual receptor cells at the rear of the eyeball.

Visual Search Tasks

Visual search tasks are experiments or tasks in which individuals are asked to locate a specific item or feature among a set of distractors, used to study attention, perception, and cognitive processes.

Treisman And Gelade

Researchers known for their work on the Feature Integration Theory of attention.

Gestalt Principle

A theory which proposes that humans tend to organize visual elements into groups or unified wholes when certain principles are applied, such as similarity or proximity.