Contractionary Fiscal Policy Should Be Used If

question 74

Multiple Choice

Contractionary fiscal policy should be used if:

• A)aggregate demand-aggregate supply equilibrium is below potential output.
• B)aggregate demand-aggregate supply equilibrium is above potential output.
• C)aggregate demand-aggregate supply equilibrium is equal to potential output.
• D)none of the above.

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Definitions:

Publicly Owned Treatment Works

Facilities owned by a state or municipality that are designed to treat municipal sewage or industrial wastewater.

Ocean Dumping

The disposal of waste materials directly into the ocean, often regulated to prevent environmental harm.

Marine Protection, Research, and Sanctuaries Act

United States legislation focused on the preservation and management of marine environments, often referred to as the Ocean Dumping Act.

Clean Water Act

U.S. federal law aimed at reducing pollution and protecting the quality of the nation's waterways.