If Real GDP Is Less Than Potential GDP, Which of the Following

question 67

Multiple Choice

If real GDP is less than potential GDP, which of the following fiscal policies would increase real GDP?

• A)a decrease in taxes
• B)an increase in government expenditures
• C)a fall in the interest rate
• D)Both A and B are correct
• E)Both B and C are correct.

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Definitions:

Maturation

The process of becoming mature, including biological, emotional, mental, or social growth and development.

Implementing Empowerment

The process of providing individuals or groups with the resources, confidence, and freedom to make decisions and contribute to organizational or personal successes.

Empowerment

Giving people the authority or power to do something, often enabling them to increase control over their own lives or work.

Implementing Empowerment

The act of giving power or authority to employees, enabling them to make decisions and take actions on their own.