In Which of the Following Cases Is Expansionary Fiscal Policy

question 46

Multiple Choice

In which of the following cases is expansionary fiscal policy LEAST effective in increasing output?

• A)if wages adjust rapidly to maintain equilibrium in the labor market
• B)if wages do not change much even when there is high unemployment
• C)if it is combined with expansionary monetary policy
• D)if we have a Keynesian AS-curve
• E)if the Fed is trying hard to keep interest rates from rising

---

Definitions:

Organizational Structure

The system of tasks, workflows, reporting relationships, and communication channels that link the diverse parts of an organization.

Senior Management

The top layer of leadership within an organization, responsible for strategic planning, decision-making, and guiding the company's direction.

Major Decisions

Significant choices that impact the course of an individual's or organization's path, often requiring careful thought and consideration.

Kotter's 8 Step Change Model

A process designed by John Kotter to facilitate organizational change, which includes creating urgency, forming a powerful coalition, and embedding new approaches into the culture.