If Policy Makers Implement Expansionary Fiscal Policy and Do Not

question 43

Multiple Choice

If policy makers implement expansionary fiscal policy and do not take into account crowding out, equilibrium GDP is likely to:

• A)be at potential GDP.
• B)be above potential GDP.
• C)be below potential GDP.
• D)cause an inflationary gap.

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Definitions:

Intracellular

Located or occurring within a cell or cells, referring to processes, reactions, or components found inside cells.

Extracellular Ions

Ions located outside the cell, in the extracellular fluid, playing key roles in various physiological processes, including the transmission of nerve impulses.

Channels

Pathways through which messages or information are communicated or transferred from one end to another, also referring to structures that allow the passage of ions across cell membranes in biology.

Cell Membrane

The lipid bilayer that encloses a cell, controlling the passage of substances in and out, thus maintaining the cell's integrity and environment.