Which of the Following Statements About Fiscal Policy Is TRUE

question 58

Multiple Choice

Which of the following statements about fiscal policy is TRUE?

• A)Real GDP can be increased above its long-run equilibrium only in the short run.
• B)Real GDP can never be increased above its long-run equilibrium,even for a brief period of time.
• C)Government can shift the aggregate demand curve inward by increasing spending.
• D)Government can shift the aggregate demand curve outward by reducing spending.

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Definitions:

Mnemonic Technique

A method or strategy used to enhance memory performance, often by associating new information with familiar patterns or structures.

Spelling

Spelling is the act of forming words correctly from their constituent letters, according to agreed conventions.

Mnemonic

A learning technique that aids in memory retention or retrieval by associating complex information with simple patterns, phrases, or acronyms.

Sensory Memory

The shortest-term element of memory that acts as a buffer for stimuli received through the senses; a type of storage that holds sensory information very briefly.