Which of the Following Statements About Fiscal Policy Is TRUE

question 126

Multiple Choice

Which of the following statements about fiscal policy is TRUE?

• A) Real Gross Domestic Product (GDP) can be increased above its long-run equilibrium only in the short run.
• B) Real Gross Domestic Product (GDP) can never be increased above its long-run equilibrium, even for a brief period of time.
• C) Government can shift the aggregate demand curve inward by increasing spending.
• D) Government can shift the aggregate demand curve outward by reducing spending.

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Definitions:

Erythrocyte Sedimentation Rate

A blood test that measures how quickly red blood cells settle at the bottom of a test tube, which can help detect inflammation in the body.

Inflammatory Process

The body's response to injury or infection, characterized by redness, warmth, swelling, and pain.

Anemia

A condition characterized by a deficiency of red blood cells or hemoglobin in the blood, leading to fatigue, weakness, and various other health issues.

Formed Elements

Red blood cells, white blood cells, and platelets; compose 45% of blood volume.