According to Our Model, Increasing G During a Recession

question 57

Multiple Choice

According to our model, increasing G during a recession,

• A) makes the economy worse off, since the equilibrium allocation of resources is Pareto-optimal.
• B) will help the economy recover and increase economic welfare.
• C) will increase consumption spending by consumers according to the multiplier effect.
• D) has no effect.
• E) had a multiplier much greater than one.

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Definitions:

Corporate Officers

Senior executives or top managers within a corporation who are given authority by the board of directors to manage the day-to-day operations and make significant business decisions.

Directors

Members of a company's board responsible for making major policy and financial decisions, acting collectively in the best interests of the company and its shareholders.

Shareholders

Individuals or entities that own one or more shares of stock in a corporation, giving them ownership interests.

Articles Of Incorporation

A document that must be filed with a secretary of state to create a corporation. Usually, it includes the basic rights and responsibilities of the corporation and the shareholders.