Fiscal Policy Actions That Are Intended to Have Long-Run Effects

question 297

Multiple Choice

Fiscal policy actions that are intended to have long-run effects on real GDP attempt to increase ________ through changing ________.

• A)aggregate demand; government spending
• B)aggregate supply; taxes
• C)aggregate demand; taxes
• D)aggregate supply; government spending

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Definitions:

Antecedent State

Psychological and physical conditions that exist before a specific behavior or decision, influencing the outcome of that behavior or decision.

Hedonic Reasons

Motivations based on the pursuit of pleasure, enjoyment, or aesthetic experiences.

Hedonic Reason

The pursuit of pleasure or emotional satisfaction in the consumption of goods or experiences, often guiding consumer behavior.

Antecedent State

The condition or state of an individual before encountering a specific situation or stimulus, which can affect their reactions or decisions.