Contractionary Fiscal Policy

question 352

Multiple Choice

Contractionary fiscal policy

• A) increases aggregate demand.
• B) decreases aggregate demand.
• C) increases aggregate supply.
• D) leaves aggregate demand unchanged.

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Definitions:

Biological Perspective

A way of looking at psychological issues by focusing on the physical and biological bases of behavior, including genetic, neurological, and physiological processes.

Psychoanalytic Perspective

A psychological theory that emphasizes the role of unconscious processes and childhood experiences in shaping behavior and personality.

Psychiatrist

A medical doctor specializing in diagnosing, treating, and preventing mental health disorders.

Trephine

A surgical instrument with a cylindrical blade used to remove a circular section of bone, often from the skull.