Expansionary Fiscal Policy to Prevent Real GDP from Falling Below

question 52

Multiple Choice

Expansionary fiscal policy to prevent real GDP from falling below potential real GDP would cause the inflation rate to be ________ and real GDP to be ________.

• A)higher; higher
• B)higher; lower
• C)lower; higher
• D)lower; lower

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Definitions:

Vulnerability Stress

This concept relates to how preexisting vulnerabilities in an individual can exacerbate their reaction to stress, potentially leading to worsened outcomes.

Marital Dissolution

The end of a marriage through separation, divorce, or death, resulting in the termination of the marital relationship.

Enduring Vulnerabilities

Persistent or lasting weaknesses or susceptibilities that can affect an individual's coping mechanisms or psychological resilience.

Toddler

A young child, typically aged between 1 to 3 years old, who is in the early stages of walking and developing cognitive abilities.