Expansionary Fiscal Policy to Prevent Real GDP from Falling Below

question 52

Multiple Choice

Expansionary fiscal policy to prevent real GDP from falling below potential real GDP would cause the inflation rate to be ________ and real GDP to be ________.

• A)higher; higher
• B)higher; lower
• C)lower; higher
• D)lower; lower

---

Definitions:

Musical Melodies

Successions of musical notes that are perceived as a single coherent structure.

Recognizing Words

Refers to the process of identifying and understanding the words in spoken or written language.

Natural Selection

A process in evolutionary biology where organisms with traits better suited to their environment are more likely to survive and reproduce, influencing the traits of future generations.

Evolution

The method through which various types of organisms are believed to have evolved and branched out from their ancestral forms over the Earth's history.