Assume There Is a Decrease in Government Purchases and Exports

question 11

Multiple Choice

Assume there is a decrease in government purchases and exports.Currently there is a recessionary gap,which implies that

• A)Inventories are accumulating.
• B)Inventories are being depleted.
• C)Desired spending is greater than output.
• D)Investment is greater than saving.

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Definitions:

Rational-legal

Rational-legal is a term often used to describe a form of authority or governance system where power is legitimized by legally enacted rules and regulations, as opposed to tradition or charismatic leadership.

Statutes

Written laws enacted by a legislative body that govern a society or state.

Codes of Conduct

Sets of rules outlining the responsibilities, ethical standards, and proper practices for individuals or organizations.

Political Action Committees (PACs)

Groups of people who organize to support candidates they feel will represent their views.