If the Effects of Expansionary Fiscal Policy Hit When the Economy

question 62

Multiple Choice

If the effects of expansionary fiscal policy hit when the economy is already expanding,

• 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 high rates of unemployment along with high rates of inflation,known as stagflation.

---

Definitions:

Absenteeism

The habitual non-presence of an employee at their job, which can indicate dissatisfaction with the job, health issues, or personal problems.

Flextime

A flexible working schedule that allows employees to choose their work hours within agreed limits.

Organizational Culture

The shared values, beliefs, and practices that shape the social and psychological environment of a business or institution.

Self-Directed Team

A group of employees who are given the autonomy to manage their work and make decisions about how to achieve their goals, often without direct supervision.