If an Economy Is Above Potential Output and the Government

question 14

Multiple Choice

If an economy is above potential output and the government opts for a contractionary fiscal policy (running surpluses) to shift the AD curve, an economist with a Classical view, who holds the Ricardian equivalence theorem to be practically true, would conclude that the AD curve:

• A)shifts to the right due to lower government spending.
• B)shifts to the left due to lower government spending.
• C)does not shift since the lower government spending is offset by higher private consumption.
• D)does not shift since the lower government spending is offset by lower private consumption.

Discern the importance of aligning reader benefits with audience needs and wants.

Realize the role of psychological factors in motivating readers through benefits.

Learn how the presentation of benefits affects audience receptivity.

Grasp the significance of tailor-made benefits for different subgroups within the audience.

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Definitions:

Subordinate Clause

A clause that cannot stand alone as a complete sentence because it does not express a complete thought, and it usually adds information to the main clause.

Main Clauses

Independent clauses that express a complete thought and can stand alone as a sentence.

Formal Email

An email written in a professional manner, adhering to a specific format or etiquette, often used in business or official communications.

Tone

The quality or character of sound or the attitude expressed by the voice in communication.