Use the Following to Answer Questions

question 138

Multiple Choice

Use the following to answer questions :
Figure: Fiscal Policy Choices
-(Figure: Fiscal Policy Choices) Look at the figure Fiscal Policy Choices. If the government uses discretionary fiscal policy for the economy in panel (a) when real GDP is Y₁, government spending is likely to be _____ and taxes are likely to be _____.

• A)reduced; cut
• B)increased; increased
• C)reduced; increased
• D)increased; cut

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Definitions:

Supreme Court

The highest judicial body in a country, often having the final authority on constitutional matters.

Protections

Measures or laws designed to safeguard the welfare, rights, or freedoms of individuals or groups from infringement or harm.

Schenck V. United States

is a landmark 1919 Supreme Court case that established the "clear and present danger" test for restrictions on free speech, related to circumstances under which the government can regulate speech in the interest of national security.

Clear And Present Danger

A doctrine used to test whether limitations may be placed on First Amendment freedoms of speech, press, or assembly when the exercise of these rights presents an immediate danger.