FIGURE 22-5 -Refer to Figure 22-5,Diagram 2.Which of the Following Fiscal Policy

question 79

Multiple Choice

FIGURE 22-5
-Refer to Figure 22-5,Diagram 2.Which of the following fiscal policy measures could the government implement to return national income to the full-employment level of GDP (potential output,Y*) ?

• A)reduce government spending
• B)reduce transfer payments
• C)increase taxes
• D)increase government spending
• E)decrease disposable income

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Definitions:

Sociocultural Perspective

An approach in psychology that examines how societal and cultural factors influence behaviors and mental processes.

Sociocultural Approach

The view that social and cultural factors may be just as powerful as evolutionary and physiological factors in affecting behavior and mental processing and that these factors must be understood when interpreting the behavior of others.

Systems Theory

An interdisciplinary study of systems in general, with the aim of elucidating principles that can be applied to all types of systems at all nesting levels in all fields of research.

Neuroscience

The scientific study of the nervous system, aimed at understanding the biological basis of behavior, thought, and emotion.