When Recessions Are the Result of Slowing Growth in Potential

question 44

Multiple Choice

When recessions are the result of slowing growth in potential output, the government's best policy is to:

• A)increase aggregate demand.
• B)decrease aggregate supply.
• C)promote saving and investment.
• D)reduce government spending.

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Definitions:

Internal Representation

The mental constructs that individuals use to understand the world, including concepts, ideas, and images.

Theories of Word Meaning

Various scholarly hypotheses and models explaining how words acquire their meanings and the cognitive processes involved.

Function

In mathematics and computer science, it refers to a relation or expression involving one or more inputs and a single output.

Folk

Relating to the traditional art, music, lore, and practices of a community or culture.