Table 27-2 -Refer to Table 27-2. Consider the Hypothetical Information in the Hypothetical

question 197

Multiple Choice

Table 27-2

-Refer to Table 27-2. 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) buy Treasury securities.
• B) conduct expansionary fiscal policy.
• C) decrease government purchases.
• D) decrease the discount rate.

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Definitions:

Lie Detection

The process of determining whether a person is telling the truth or lying, through various methods including physiological responses and behavioral analysis.

FMRI

Functional Magnetic Resonance Imaging, a neuroimaging procedure that measures brain activity by detecting changes associated with blood flow.

Two-Photon Imaging

A fluorescence imaging technique that allows imaging of living tissue up to a very high depth, used especially in neuroscience to visualize brain activity.

Polygraph

A machine designed to detect lies by measuring physiological responses such as blood pressure, pulse, and respiration, under the assumption that lying produces distinctive responses.