"Expansionary Fiscal Policy Is Needed to Increase Real GDP ---

question 11

Multiple Choice

"Expansionary fiscal policy is needed to increase Real GDP --- at least in the short run." The economist who said this most likely believes that

• A) the tax multiplier is larger than the government spending multiplier.
• B) the AS curve is vertical.
• C) there will be a great deal of crowding out connected with a rise in government spending.
• D) the AS curve is upward-sloping.
• E) c and d

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Definitions:

Two-for-One

A promotional offer where customers receive two items for the price of one, commonly used to attract buyers and increase sales volume.

Price Reductions

A strategy where the selling price of a product or service is lowered to increase demand or compete more effectively.

Trial

The process of testing or using a product or service for a limited period to assess its effectiveness or appeal before a broader launch.

Significant Savings

Describes a substantial reduction in costs or expenses, often through discounts, efficient budgeting, or cost-effective solutions.