Which of the Following Is an Appropriate Discretionary Fiscal Policy

question 157

Multiple Choice

Which of the following is an appropriate discretionary fiscal policy if equilibrium real GDP falls below potential real GDP?

• A)an increase in government purchases
• B)an increase in the supply of money
• C)an increase in individual income taxes
• D)a decrease in transfer payments
• E)an increase in government support for environmental research

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Definitions:

Psychological Experiments

Research methods used in psychology to collect data and test hypotheses, often involving controlled conditions and variables to study behavior and mental processes.

Mode

The value that appears most frequently in a data set, a measure of central tendency in statistics.

Scores

Quantitative measures or values that represent the outcome of a test, performance, or assessment.

Middle Score

The median value in a set of numbers, representing the point at which half of the figures are above and half are below.