Contractionary Fiscal Policy to Prevent Real GDP from Rising Above

question 302

Multiple Choice

Contractionary fiscal policy to prevent real GDP from rising above 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

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Definitions:

Same-Sex Unions

Legal or socially recognized partnerships between two individuals of the same sex, akin to marriage.

Deindividuation

A psychological state where an individual loses self-awareness and self-restraint, often occurring within group contexts.

Self-Awareness

Self-awareness regarding personal qualities, sensations, purposes, and wishes.

Social Loafing

The phenomenon in which individuals exert less effort when working in a group than when working alone.