Table 27-1 -Refer to Table 27-1. Consider the Hypothetical Information in the Hypothetical

question 192

Multiple Choice

Table 27-1

-Refer to Table 27-1. Consider the hypothetical information in the table above for potential real GDP, real GDP and the price level in 2013 and in 2014 if the Congress and the president do not use fiscal policy. If the Congress and the president want to keep real GDP at its potential level in 2014, they should

• A) decrease income taxes.
• B) decrease government purchases.
• C) decrease the money supply.
• D) increase the level of interest rates.

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Definitions:

Joyfulness

A state of great happiness and pleasure.

Expressed Emotion

A measure of the family environment that is based on how family members speak about each other, indicating levels of criticism, hostility, and emotional involvement.

Delusional Thoughts

False beliefs held with strong conviction despite superior evidence to the contrary, often symptomatic of psychiatric disorders.

Suspicious

The state or trait of being inclined to distrust or be wary of others' motives or actions without clear evidence.