Use the Following to Answer Questions

question 60

Multiple Choice

Use the following to answer questions .
Exhibit: Fiscal Policy Options
-(Exhibit: Fiscal Policy Options) Suppose the aggregate demand curve is AD₁. All of the following events would more likely bring the economy back to the natural rate of unemployment except

• A) The government orders a one-time surcharge of 10% to be added to individual income tax liabilities.
• B) Businesses increase investment in response to tax breaks for businesses.
• C) The Federal Reserve buys bonds on the open market.
• D) The government orders a cut in withholding rates designed to increase disposable income and boost consumption.

---

Definitions:

Buffer

A component in communication designed to soften the impact of the message, often used before delivering bad news.

Buffer Statement

An opening remark or sentence intended to soften the impact of a negative message that follows.

Productivity Rates

A measure of the efficiency of a person, machine, factory, system, etc., in converting inputs into useful outputs.

HR Manager

A professional responsible for recruiting, screening, interviewing and placing workers, as well as managing employee relations, payroll, benefits, and training.