When a Recessionary Gap Exists,what Should the Government Do to Address

question 89

Multiple Choice

When a recessionary gap exists,what should the government do to address the situation?

• A)Increase its own spending and tax rates.
• B)Decrease its own spending and tax rates.
• C)Increase its own spending or decrease tax rates.
• D)Decrease its own spending or increase tax rates.
• E)Decrease its own spending but leave tax rates unchanged.

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Definitions:

Short-Term Memory Tasks

Cognitive tasks that require the temporary holding and processing of information over a short period, typically seconds to a minute.

Short-Term Memory

A cognitive system with a limited capacity that is capable of temporarily holding information available for processing.

Encoding

The initial process of transforming sensory input into a form or format that can be stored in memory.

Rehearsing

The act of practicing or repeating information to aid in memory retention.