Refer to the Above Diagram

question 75

Multiple Choice

Refer to the above diagram.The impact of the public sector on the equilibrium GDP:

• A)is expansionary.
• B)is contractionary.
• C)is neutral.
• D)cannot be determined from the information given.

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Definitions:

Indemnification

A contractual obligation in which one party agrees to compensate another for any harm or loss that has occurred or might occur due to a specified event or action.

Negligent Employee

An employee who fails to exercise the degree of care considered reasonable under the circumstances, resulting in harm or loss.

Respondeat Superior

A legal doctrine holding an employer or principal legally responsible for the wrongful actions of an employee or agent, if such actions occur within the scope of employment or representation.

Implied Authority

The power of an agent to perform acts which are reasonably necessary to accomplish the purpose of an organization.