Consider the Following Events: Event 1: Growth in the World

question 93

Multiple Choice

Consider the following events: Event 1: Growth in the world economy slows.Event 2: The world price of oil rises.
Event 3: Canadian labour productivity declines.Choose the statement that is correct.

• A)A classical macroeconomist and a monetarist recommend that taxes be kept low to avoid disincentive effects for all of the events and a Keynesian recommends active fiscal policy and monetary policy to offset all events.
• B)A Keynesian recommends active fiscal policy but not monetary policy for events 1 and 2 and monetary policy but not fiscal policy for event 3.
• C)All macroeconomists believe that the economy requires active fiscal policy and monetary policy to keep the economy out of recession.
• D)A Keynesian recommends no action for all of the events.
• E)A classical macroeconomist and a monetarist recommend an increase in the quantity of money for all events.

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Definitions:

Virtue-Based Theories

Ethical theories that focus on the moral character of individuals and the virtues they embody for ethical decision making.

Conduct Of Leaders

This term addresses the actions, behavior, and ethical practices of individuals in leadership positions and their impact on their followers and organization.

Ethical Leadership Perspectives

Views and approaches focusing on leading with moral principles, emphasizing integrity, fairness, and social responsibility.

Heifetz

is associated with adaptive leadership theory, focusing on the challenges that require changes in people's priorities, beliefs, habits, and loyalties.