Fiscal Policy Can Shift

question 3

Multiple Choice

Fiscal policy can shift:

• A)aggregate demand only.
• B)both aggregate demand and potential output.
• C)both aggregate demand and short-run aggregate supply, but not long-run aggregate supply.
• D)only short-run functions.

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Definitions:

Dancing

The act of moving rhythmically to music, typically following a set sequence of steps, and often used as a form of expression or social interaction.

Diathesis-Stress Model

A model that recognizes the combination of a diathesis (i.e., vulnerability) and sufficient amounts of life stress that, combined, are likely to produce a disorder.

Vulnerability

The susceptibility to physical or emotional injury or attack; it can also refer to a person's increased risk of developing a disorder or illness.

Temporal Lobes

The regions of the cerebral cortex located beneath the lateral fissure on both cerebral hemispheres of the brain, involved in processing auditory information and encoding memory.