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:

Preganglionic Axons

Axons that originate from neurons located in the brainstem or the spinal cord and terminate in autonomic ganglia, part of the autonomic nervous system.

Adrenal Cortex

The outer portion of the adrenal glands that produces steroid hormones such as cortisol, aldosterone, and androgens.

Parasympathetic Ganglia

Clusters of nerve cell bodies in the parasympathetic division of the autonomic nervous system that transmit signals to various body organs.

Receptor Molecules

Proteins located on the cell surface or within cells that bind to specific molecules like hormones, antigens, or neurotransmitters, triggering a specific cellular response.