If Policymakers Are Concerned That the Economy Is in Danger

question 85

Multiple Choice

If policymakers are concerned that the economy is in danger of rising inflation because aggregate demand is increasing faster than aggregate supply,the appropriate fiscal policy response is to

• A)increase taxes.
• B)increase government spending.
• C)use expansionary fiscal policy.
• D)increase interest rates.

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Definitions:

Puberty

The developmental stage in humans during which children develop secondary sexual characteristics and reach sexual maturity.

Personality

The combination of characteristics or qualities forming an individual's distinctive character and behavioral patterns.

Unconscious

The part of the mind that is not within thought's immediate reach and that contains desires, wishes, and motivations unknown to the individual.

Preconscious

represents thoughts and feelings that are not immediately in consciousness but can be accessed through attention or stimuli.