If the Economy Is in a Recession and Prices Are

question 120

Multiple Choice

If the economy is in a recession and prices are relatively stable, then the discretionary fiscal policy or policies that would most likely be recommended to correct this macroeconomic problem would be:

• A) Increased government spending or increased taxation, or a combination of the two actions
• B) Increased government spending or decreased taxation, or a combination of the two actions
• C) Increased government spending or increased taxation, but not a combination of the two actions
• D) Decreased government spending or decreased taxation, or a combination of the two actions

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Definitions:

Gender Schema Theory

A theory that suggests people learn about gender roles and develop gender-based beliefs by observing and imitating gender-linked behaviors in society.

Cognitive Explanation

A psychological interpretation focusing on understanding how mental processes like perception, memory, and problem-solving work and influence behavior.

Information Processing

The approach to psychology that treats the mind as a computer, focusing on how people process, store, retrieve, and manipulate information.

Environmental Influences

External factors that can affect an individual's behavior, development, and lifestyle, including social, cultural, and physical environments.