If Real GDP Exceeded Potential Real GDP and Inflation Was

question 12

Multiple Choice

If real GDP exceeded potential real GDP and inflation was increasing,which of the following would be an appropriate fiscal policy?

• A)a decrease in the money supply and an increase in the interest rate
• B)an increase in government spending
• C)an increase in taxes
• D)an increase in oil prices

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Definitions:

Neurons

Specialized cells transmitting nerve impulses; the fundamental units of the brain and nervous system.

Terminal Buttons

The small knobs at the end of an axon that release chemicals (neurotransmitters) to transmit the nerve impulse to the next neuron.

Synapses

The junctions across which nerve impulses pass from one neuron to another.

Glia

Non-neuronal cells in the nervous system that provide support and protection for neurons.