Use the Following to Answer Questions

question 159

Multiple Choice

Use the following to answer questions :
Figure: Fiscal Policy Choices
-(Figure: Fiscal Policy Choices) Look at the 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:

Psychoanalysis

is a psychological theory and therapeutic method developed by Sigmund Freud that emphasizes the importance of unconscious processes in understanding behavior.

Transference

A psychological phenomenon whereby patients project feelings and attitudes from past relationships onto their therapist, originally observed in psychoanalysis.

Psychoanalysis

A therapeutic approach originating with Sigmund Freud, focusing on unconscious processes as they are manifested in a person's present behavior.

Hostility

A state of anger and aggression towards another person or group, often manifesting in antagonistic behavior or attitudes.