Related to the Economics in Practice on P

question 106

Multiple Choice

Related to the Economics in Practice on p. 558: An earthquake destroyed 50% of the Moldovian manufacturing base. The Moldovian government decided to use a contractionary fiscal policy to counter the effects of the earthquake on the economy. The use of the contractionary fiscal policy would have caused

• A) the price level to be lower and the output level to be higher than they would have been without the policy action.
• B) both the price level and the output level to be higher than they would have been without the policy action.
• C) both the price level and output level to be lower than what they would have been without the policy action.
• D) the price level to be higher and the output level to be lower than they would have been without the policy action.

---

Definitions:

Situational Tests

Assessments designed to evaluate how individuals respond to specific challenges or tasks in controlled scenarios, often used in psychology and employment settings.

Temporary Leave

Temporary leave is a period of time when an employee is officially allowed to be absent from their workplace for various reasons, such as health issues or personal matters.

Temporary Liaison

A short-term collaboration or relationship established to achieve a specific goal.

Experienced Manager

A professional who has gained a significant amount of expertise and knowledge in managing through years of practice and learning.