In Any Decision About Stimulating the Economy with a Fiscal

question 99

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

---

Definitions:

Social Interaction

The process by which individuals act and react in relation to others, influencing and shaping relationships, communication, and societal norms.

Need for Privacy

The individual desire for solitude and space where one can be free from public view or disturbance.

Communication in Organizations

The process by which information and meanings are transferred among the members of an organization to achieve mutual understanding.

Decision Making

The cognitive process of selecting a course of action from among multiple alternatives to achieve a desired objective.