The Direction of Discretionary Fiscal Policy Cannot Be Examined by a Simple

question 58

Multiple Choice

The direction of discretionary fiscal policy cannot be examined by a simple look at the changes in the actual budget deficits or surpluses.This is because:

• A)those changes may reflect the changes in the general price level.
• B)those changes may reflect automatic changes in the tax revenues as a result of change in GDP.
• C)those changes may reflect the changes in the tax revenues as a result of change in imports.
• D)it is impossible to calculate the changes in the actual budget deficits or surpluses.

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Definitions:

Vestibular Sense

The sensory system that contributes to balance and spatial orientation by detecting changes in motion and gravity.

Kinesthesia

The perception of body movements and position sense, often referred to as proprioception.

Sensory Interaction

The principle that one sense may influence another, as when the smell of food enhances its taste.

Embodied Cognition

The theory that cognitive processes are deeply rooted in the body's interactions with the world.