If the Government Wants to Close a GDP Gap, It

question 47

Multiple Choice

If the government wants to close a GDP gap, it should

• A) raise government spending, thereby shifting the aggregate demand curve to the left.
• B) lower taxes, thereby shifting the aggregate demand curve to the right.
• C) lower government spending, thereby shifting the aggregate supply curve to the left.
• D) raise taxes, thereby shifting the aggregate supply curve to the right.
• E) raise both government spending and taxes by the same amount, thereby shifting the aggregate demand curve to the left.

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Definitions:

Risky Behavior

Actions that expose individuals to danger or harm, often with a disregard for the negative consequences.

Gray Matter

The darker tissue of the brain and spinal cord, consisting mainly of nerve cell bodies and branching dendrites.

Frontal Lobes

Regions of the brain located at the front of each cerebral hemisphere, responsible for decision making, problem solving, control of purposeful behaviors, consciousness, and emotions.

Myelination

The process of forming a myelin sheath around the nerves, improving the speed and efficiency of electrical impulses.