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:

Eases Pain

Provides relief from discomfort or suffering, reducing the intensity of pain.

Neurotransmitter

A chemical substance that transmits signals across the synapse from one neuron to another in the brain, influencing a variety of processes and functions.

Movement, Learning

The acquisition of knowledge or skills through practice or experience, often involving changes in neural activity patterns and motor behaviors.

Attention, Emotion

The interplay between cognitive focus and feelings, and how each can influence the other.