Expansionary Fiscal Policy

question 12

Multiple Choice

Expansionary fiscal policy:

• A) increases long-run aggregate supply.
• B) decreases long-run aggregate supply.
• C) increases aggregate demand.
• D) decreases aggregate demand.

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Definitions:

Chronological Age

The actual age of an individual measured in years from the date of birth.

Intelligence Quotient

A measure of a person's intellectual abilities in relation to the average performance of others in their age group.

Deviation Scores

Statistical measures that indicate the difference between an observed value and the mean of a dataset, showing how far from the "normal" a particular value lies.

Normal Distribution

A bell-shaped distribution of data where most values cluster around a central mean or average value.