Table 27-2 -Refer to Table 27-2. Consider the Hypothetical Information in the Hypothetical

question 197

Multiple Choice

Table 27-2

-Refer to Table 27-2. Consider the hypothetical information in the table above for potential real GDP, real GDP and the price level in 2013 and in 2014 if the Congress and the president do not use fiscal policy. If the Congress and the president want to keep real GDP at its potential level in 2014, they should

• A) buy Treasury securities.
• B) conduct expansionary fiscal policy.
• C) decrease government purchases.
• D) decrease the discount rate.

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Definitions:

Socialization

The process through which individuals learn and adopt the norms, values, customs, and behaviors appropriate to their society.

Consciousness

The condition of being conscious and cognizant of the environment, one's thoughts, and emotions.

Cocktail Party Effect

The ability to focus one's auditory attention on a particular stimulus while filtering out a range of other stimuli, almost as if at a noisy party.

Attention

The act of mentally directing focus towards a particular part of the environment, disregarding other elements.