If the Economy Is Falling Below Potential Real GDP, Which

question 63

Multiple Choice

If the economy is falling below potential real GDP, which of the following would be an appropriate fiscal policy to bring the economy back to long-run aggregate supply?

• A)an increase in the money supply and a decrease in interest rates
• B)an increase in government purchases
• C)an increase in oil prices
• D)an increase in taxes
• E)a decrease in the supply government services

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Definitions:

Assimilation

The process whereby people gradually shift almost entirely from their former culture to the beliefs and ways of the new culture.

Cultural Trauma

The profound impact of a traumatic event that affects a whole society or culture, leading to a shift in identity, values, or perception.

Integration

The process whereby people retain aspects of their former culture while internalizing aspects of a new host culture.

Socialization

The process through which individuals learn and internalize the norms, values, and behaviors necessary for functioning within their society.