Once Either Expansionary or Contractionary Fiscal Policy Has Been Undertaken

question 14

Multiple Choice

Once either expansionary or contractionary fiscal policy has been undertaken,

• A) aggregate demand will respond quickly and the problems in the economy will be corrected.
• B) aggregate demand will respond quickly in the short run but the economy will not improve in the long-run.
• C) a time lag exists between implementation and the results of the policy.
• D) taxes will need to be adjusted because of the recognition time lag.

---

Definitions:

Freud's Psychodynamic Analysis

A theoretical approach in psychology that emphasizes unconscious processes and conflicts as the root of psychological issues and behavior.

Psychoeducational Group

A form of group therapy that combines educational and psychological support to help participants deal with specific issues or learn certain skills.

Interpersonal Skills

Abilities that facilitate effective and positive communication and interaction with others, including listening, empathy, and conflict resolution.

Dysfunctional Groups

Groups in which the relationships and communication patterns disrupt the group's objectives and performance.