If the Economy Is Growing Beyond Potential Real GDP,which of the Following

question 282

Multiple Choice

If the economy is growing beyond potential real 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)the money supply and a decrease in interest rates.
• B)government purchases.
• C)oil prices.
• D)taxes.

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Definitions:

Psychoanalytic

Relating to a theory and therapeutic method developed by Sigmund Freud that emphasizes unconscious mental processes and early childhood experiences in shaping behavior.

Cognitive-behavior Therapist

A mental health professional specializing in cognitive-behavioral therapy, which focuses on changing negative thoughts and behaviors to improve emotional regulation and develop personal coping strategies.

Intrapsychic Processes

Psychological activities and dynamics occurring within an individual's mind, affecting their behavior and emotions.

Emotions

Psychological states that arise in response to internal or external events and are characterized by specific physiological responses, feelings, and behaviors.