During the Course of Their Communication, Albert and Nathan Attach

question 61

Multiple Choice

During the course of their communication, Albert and Nathan attach different meanings to the same word. This is an example of:

• A) sugging.
• B) bypassing.
• C) masking.
• D) brainstorming.
• E) heckling.

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Definitions:

Expansionary Fiscal Policy

An increase in government purchases, decrease in net taxes, or some combination of the two aimed at increasing aggregate demand enough to reduce unemployment and return the economy to its potential output; fiscal policy used to close a recessionary gap

Contractionary Fiscal Policy

A decrease in government purchases, increase in net taxes, or some combination of the two aimed at reducing aggregate demand enough to return the economy to potential output without worsening inflation; fiscal policy used to close an expansionary gap.

Contractionary Monetary Policy

A monetary policy strategy used by central banks to reduce inflation and cool an overheating economy by raising interest rates and decreasing the money supply.

Nominal GDP

The total value of all goods and services produced in a country, measured in current prices without adjusting for inflation.