What Would Be Appropriate Government Action to Close a Recessionary

question 103

Multiple Choice

What would be appropriate government action to close a recessionary gap?

• A)Use policy to decrease aggregate supply.
• B)Use policy to decrease potential GDP.
• C)Use counter-cyclical fiscal policy to decrease aggregate demand.
• D)Use counter-cyclical fiscal policy to increase aggregate demand.

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Definitions:

Self-efficacy

A belief in one's ability to succeed in specific situations or accomplish a task.

Effort Necessary

The amount of work or energy required to achieve a specific outcome or goal.

Systematic Desensitization

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

Behavior Therapists

Clinical professionals who use techniques based on behavioral and cognitive principles to treat psychological disorders and improve mental health.