If the Effects of Contractionary Fiscal Policy Hit When the Economy

question 80

Multiple Choice

If the effects of contractionary fiscal policy hit when the economy is already contracting,

• A) the effects could lead to even deeper recession.
• B) the policy will have no effect.
• C) the policy is called an automatic stabilizer.
• D) it may lead to excessive aggregate demand and inflation.
• E) it will lead to stagflation.

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Definitions:

Defamation

A false statement presented as fact that causes injury or damage to the subject's reputation.

Bad News Message

Communication designed to convey disappointing or unfavorable information to the recipient in a way that is clear yet sensitive and considerate.

Effective Conclusion

The final part of a piece of writing or speech that effectively summarizes key points and leaves a lasting impression.

Buffer

In the context of communication, it refers to a method or element that decreases the impact of a message, often used to soften negative news.