In a Recession,some Aspects of Fiscal Policy Can Stimulate Aggregate

question 201

Multiple Choice

In a recession,some aspects of fiscal policy can stimulate aggregate demand without deliberate actions of policymakers.This occurs as a result of:

• A) crowding out.
• B) the multiplier effect.
• C) automatic stabilizers.
• D) Ricardian equivalence.

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Definitions:

Interpersonal Attraction

The force that draws people together, leading to friendships, romantic relationships, or other social connections.

Mental Stress

The psychological strain or distress experienced by an individual in response to perceived pressures or challenges.

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A broad term for a range of conditions affecting the heart or blood vessels, often associated with atherosclerosis or heart function issues.

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