The Key to Assessing Whether Fiscal Policy Is Expansionary Is

question 32

True/False

The key to assessing whether fiscal policy is expansionary is to observe the change in the full-employment budget as a percentage of GDP.

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Definitions:

Stress Tolerance

Capacity to withstand psychological and emotional stress without succumbing to adverse effects.

Resilience

The capacity to recover quickly from difficulties; mental toughness and adaptability in the face of challenges.

Optimism

The tendency to hold a hopeful and positive outlook towards future outcomes.

Flexible

The ability to adapt quickly and effectively to new conditions or situations.