Suppose the Economy Is at a Position Below the Physical

question 147

Multiple Choice

Suppose the economy is at a position below the physical production possibilities frontier but above the institutional production possibilities frontier.In response to this situation,Keynesian economists may propose that government enact __________ fiscal policy to correct this __________ gap by __________ government expenditures.

• A) expansionary; inflationary; increasing
• B) contractionary; inflationary; decreasing
• C) expansionary; recessionary; increasing
• D) contractionary; recessionary; decreasing
• E) contractionary; inflationary; increasing

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Definitions:

Namibia

A country in southern Africa, known for its Namib Desert along the Atlantic Ocean coast.

Political Skill

The ability to effectively understand others at work and use such knowledge to influence others to act in ways that enhance one’s personal or organizational objectives.

Vertical Networks

Hierarchical connections between levels of an organization or system, facilitating upward and downward communications and decision-making.

Same Department

Belonging to or occurring within the same unit, division, or category within an organization or institution.