In Any Decision About Stimulating the Economy with a Fiscal

question 102

Multiple Choice

In any decision about stimulating the economy with a fiscal expansion (increasing government purchases) ,the government must weigh the short-run benefits of ________ against the long-run costs of ________.

• A)a higher price level; unemployment
• B)increased potential output; a higher price level
• C)a higher price level; lower real GDP
• D)increased real GDP; higher economic growth
• E)increased economic activity; lower economic growth

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Definitions:

Social Responsibility

The practice of businesses making decisions and taking actions that benefit society, including environmental stewardship, ethical labor practices, and community support.

Societal Well-being

The overall health, happiness, and quality of life of a society's population.

Ethical Principles

Fundamental guidelines that dictate behavior, reflecting beliefs about what is right, fair, honest, and compassionate in conduct.

Business Situations

Various circumstances or contexts in which businesses operate, influenced by factors like economic conditions, competition, and market demands.