Suppose Real GDP Is $12

question 104

Multiple Choice

Suppose real GDP is $12.1 trillion and potential GDP is $12.6 trillion.To move the economy back to potential GDP,Congress should

• A)lower taxes by an amount less than $500 billion.
• B)raise government purchases by $500 billion.
• C)raise government purchases by more than $500 billion.
• D)lower taxes by $500 billion.
• E)lower government purchases by $500 billion.

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Definitions:

Social Norms

The unwritten rules and expectations about appropriate behavior that guide individual actions in social situations and groups.

Status Competition

The competition among group or team members for social standing, recognition, or valued roles, which can influence group dynamics.

Competence-Based

Refers to an approach or system that focuses on individuals' ability to meet specific standards or competencies.

Integrity-Based

A principle or approach that emphasizes honesty, ethical conduct, and consistency of actions and values.