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:

Layer 3

In the context of networking, refers to the third layer of the OSI model - the network layer - responsible for packet forwarding, including routing through intermediate routers.

Layer 2

In networking, this refers to the data link layer of the OSI model, which is responsible for node-to-node data transfer and detecting errors in the physical layer.

Ensures Delivery

Refers to mechanisms or protocols that guarantee the arrival of data packets from sender to receiver in computing and networking.

TCP

Transmission Control Protocol, a core protocol of the Internet Protocol Suite, ensures reliable, ordered delivery of a stream of bytes from a program on one computer to another.