Which of the Following Fiscal Policy Actions Would Definitely Cause

question 82

Multiple Choice

Which of the following fiscal policy actions would definitely cause an increase in the size of a recessionary gap?

• A)increases in taxes and cuts in government spending
• B)cuts in taxes
• C)increases in taxes and increases in government spending
• D)cuts in taxes and increases in government spending

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Definitions:

Clever Hans

A horse in early 20th century Germany that was believed to have the ability to perform arithmetic and other intellectual tasks, later understood as an example of the observer-expectancy effect.

Psychic Abilities

Claimed abilities that extend beyond the known physical senses, such as telepathy or clairvoyance.

Delta Waves

Delta waves are slow brainwaves, predominant in deep sleep, associated with healing and regeneration in the human brain.

Representative Sample

A subgroup of a population that accurately reflects the members of the entire population, enabling statistically valid conclusions.