Use of Activist Fiscal and Monetary Policy Can Bring Rapid

question 176

Multiple Choice

Use of activist fiscal and monetary policy can bring rapid growth, as was the case in the United States before the 1972 election. One consequence of an activist policy is:

• A) use of macroeconomic policy that stabilizes the economy.
• B) a political business cycle caused by the use of macroeconomic policy to serve political ends.
• C) countercyclical macroeconomic policy designed to help the economy.
• D) crowding out as decreases in government spending push out the private business spending.

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Definitions:

Temporal

Relating to time or the sequential order in which events occur.

Parietal

Referring to the parietal lobe of the brain, which is involved in processing sensory information from the body, understanding spatial orientation, and language processing.

Geons

Basic three-dimensional shapes that are the building blocks for recognizing objects, according to the recognition-by-components theory.

Occipital Cortex

The part of the brain located at the back of the head, crucial for processing visual information.