Suppose Aggregate Demand Is Too Low to Bring About the Natural

question 44

Multiple Choice

Suppose aggregate demand is too low to bring about the Natural Real GDP level.A Keynesian policy prescription would call for a(n) _____________________ to close this recessionary gap.

• A) increase in government spending
• B) decrease in government spending
• C) increase in taxes
• D) decrease in taxes
• E) a or d

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Definitions:

Serious Misconduct

Serious misconduct is a severe behavior or action by an employee that breaches workplace rules or standards to such an extent that it justifies immediate dismissal.

Maintenance of Membership

A union agreement clause requiring employees to maintain union membership for the duration of the employment contract.

Agency Shop

A workplace agreement where employees do not have to join the union, but must pay union dues since the union negotiates on behalf of all employees.

Closed Shop

A form of labor agreement in which a company agrees to hire and employ only members of a labor union.