If the Self-Correcting Mechanism Operates Quickly

question 48

Multiple Choice

If the self-correcting mechanism operates quickly,

• A)direct intervention is less necessary to close a recessionary gap.
• B)fiscal stimulus is far more useful in closing a recessionary gap than monetary policy.
• C)monetary policy is far more useful in closing a recessionary gap than fiscal policy.
• D)fiscal stimulus is ineffective and inflation will occur.

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Definitions:

Strategic Compensation

A systematic approach to managing a company’s payment strategies to align with its business goals and objectives.

Attracting New Employees

Strategies and practices aimed at drawing in potential candidates to fill open positions within an organization.

Reducing Turnover

Strategies or practices intended to decrease the rate at which employees leave and have to be replaced within an organization.

Expectancy Theory

A motivational theory suggesting that individuals are more likely to act in a certain way if they expect that the action will lead to a desired outcome or reward.