Suppose Aggregate Demand Is Too Low to Bring About the Natural

question 44

Multiple Choice

Suppose aggregate demand is too low to bring about the Natural Real GDP level.A Keynesian policy prescription would call for a(n) _____________________ to close this recessionary gap.

• A) increase in government spending
• B) decrease in government spending
• C) increase in taxes
• D) decrease in taxes
• E) a or d

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Definitions:

Greater Sciatic Notch

A large, deep notch on the posterior border of the hip bone, through which several nerves and blood vessels pass.

Ischial Spine

A bony projection from the ischium bone of the pelvis, serving as an attachment point for ligaments and muscles of the pelvic region.

Pisiform

A small pea-shaped bone found in the proximal row of the wrist (carpal) bones, embedded within the flexor carpi ulnaris tendon.