If the Economy Is Growing Beyond Potential GDP, Which of the Following

question 159

Multiple Choice

If the economy is growing beyond potential GDP, which of the following would be an appropriate fiscal policy to bring the economy back to long-run aggregate supply? An increase in:

• A)liquidity and a decrease in interest rates.
• B)government purchases.
• C)oil prices.
• D)taxes.

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Definitions:

Sociability

The trait of being inclined to engage in social interactions and form relationships with others.

Predominant Style

The most common or authoritative style or approach in a particular area or activity.

Intensity

The degree of strength, force, or energy with which an action is performed or an attribute is possessed.

Communication Style

Describes the preferred way an individual expresses themselves and receives information from others, which can include verbal, non-verbal, written, and digital forms.