Contractionary Fiscal Policy to Prevent Real GDP from Rising Above

question 302

Multiple Choice

Contractionary fiscal policy to prevent real GDP from rising above potential real GDP would cause the inflation rate to be ________ and real GDP to be ________.

• A)higher; higher
• B)higher; lower
• C)lower; higher
• D)lower; lower

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Definitions:

Padded Tongue Depressor

A tool used in medical settings, featuring padding to gently depress the tongue for better examination of the mouth and throat.

Restrictive Clothing

Garments that are tight enough to limit the range of motion or cause discomfort.

Jerking Movements

Involuntary muscle movements that can be abrupt and can occur as a symptom of various neurological disorders.

Siderails

Safety bars attached to the sides of hospital beds, used to prevent patients from falling and to assist in repositioning themselves in bed.