Fiscal Policy Actions That Are Intended to Have Long-Run Effects

question 247

Multiple Choice

Fiscal policy actions that are intended to have long-run effects on real GDP attempt to increase ________ through changing ________.

• A)aggregate demand; government spending
• B)aggregate supply; taxes
• C)aggregate demand; taxes
• D)aggregate supply; government spending
• E)aggregate supply; wage rates

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Definitions:

Good Faith

An honest intent to act without taking an unfair advantage over another party, often highlighted in contracts and negotiations.

Ordinary Care

The level of diligence and caution that an average person exercises and is expected to exercise in a specific situation.

Altered Amounts

A term related to the unauthorized modification of the numerical value, conditions, or specifications recorded in a financial document or instrument.

Customer's Negligence

Refers to situations where a customer fails to exercise reasonable care, leading to loss or damage.