Which of the Following Reflects a Coordination Problem in Aggregate

question 58

Multiple Choice

Which of the following reflects a coordination problem in aggregate demand?

• A)Congress approves increases in government spending that are insufficient to stimulate aggregate demand.
• B)Congress wants to maintain balanced budgets during a recession rather than running budget deficits.
• C)Congress increases spending in areas that are already at or near full-employment.
• D)Automatic stabilizers shift the budget toward a surplus during an expansion and a deficit during a recession without Congressional action.

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Definitions:

Adults

Individuals who are considered mature and are biologically, legally, or socially recognized as being fully grown and responsible for their actions.

Autonomy Stage

A phase in developmental psychology where individuals focus on establishing independence and personal control over physical and social environments.

Erikson

Erik Erikson, a developmental psychologist known for his theory on the psychological development of human beings, identifying eight stages of development.

Statements

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