Use the Following to Answer Questions

question 78

Multiple Choice

Use the following to answer questions:
-(Figure: Fiscal Policy Choices) Refer to Figure: Fiscal Policy Choices. If the government uses discretionary fiscal policy for the economy in panel (b) 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:

Stimulus

Anything that can prompt a physiological or psychological response or reaction in an organism.

Bayley-III

The third edition of the Bayley Scales of Infant and Toddler Development, a comprehensive tool for assessing developmental functioning in young children.

Hidden Toy

A concept in developmental psychology referring to an infant's ability to remember an object exists even when it is not visible.

Bayley-III

The third edition of the Bayley Scales of Infant and Toddler Development, a standard series of measurements used to assess the development of children up to 3 years of age.