In the ISLM Framework a Contractionary Fiscal Policy Causes Aggregate

question 31

Multiple Choice

In the ISLM framework a contractionary fiscal policy causes aggregate output to ________ and the interest rate to ________,everything else held constant.

• A)increase;increase
• B)increase;decrease
• C)decrease;decrease
• D)decrease;increase

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Definitions:

Workforce Reduction

Strategies employed by organizations to decrease the number of employees, typically through layoffs, voluntary retirement, or attrition, to reduce costs or adjust to structural changes.

Downsizing

The act of reducing the size of a company by eliminating staff positions in an effort to decrease costs and improve operational efficiency.

Systematic Change

A planned and structured approach to change that affects the entire organization or significant parts of it, rather than being unplanned or isolated.

Competitive Advantage

Competitive advantage is the unique edge that a company has over its competitors, allowing it to generate greater sales, attract more customers, or achieve superior margins.