If the Actual Output Lies Below Potential Output, Then an Appropriate

question 62

Multiple Choice

If the actual output lies below potential output, then an appropriate fiscal policy would be to _____, which will shift the _____ curve to the _____.

• A) increase government purchases; AD; left
• B) increase transfer payments; AS; right
• C) increase tax rates; AD; right
• D) increase government purchases; AD; right

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Definitions:

Closer Approximations

Represents a method or process in mathematics and science for estimating a value or position with increasing accuracy.

Reinforcement Contingency

A condition where the delivery of a reinforcement depends on the occurrence of a specific behavior.

Skinner Box

A controlled environment used to study behavior conditioning by training animals through rewards and punishments.

Programmed

Designed or set up to follow a specific sequence of operations or instructions to achieve a particular outcome.