The Growth Rate of Potential Output Might Be Decreased by an Expansionary

question 22

Multiple Choice

The growth rate of potential output might be decreased by an expansionary fiscal policy if

• A)the budget deficits are persistent.
• B)the simple multiplier is small.
• C)the policy crowds out private investment.
• D)public investment has high productivity.
• E)the composition of output is not altered.

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Definitions:

Ivan Pavlov

A Russian physiologist known for his research in classical conditioning, demonstrating how animals learn to associate a neutral stimulus with a significant one, leading to a learned response.

Carl Rogers

Carl Rogers was an influential American psychologist and one of the founders of the humanistic approach to psychology.

Systematic Desensitization

A behavioral therapy technique used to reduce phobic responses through gradual exposure to the feared object or situation alongside relaxation exercises.

Cognitive Therapy

A type of psychotherapy that addresses maladaptive patterns of thought to treat psychological disorders.