The Crowding-Out Effect Implies That a

question 56

Multiple Choice

The crowding-out effect implies that a

• A) budget surplus will be highly effective against inflation.
• B) budget deficit is likely to stimulate aggregate demand and cause inflation.
• C) budget deficit will increase real interest rates and, thereby, retard private spending.
• D) budget surplus will retard aggregate demand and throw the economy into a downward spiral.

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Definitions:

Critical Incidents Method

A performance appraisal method that focuses on the most significant events (or incidents) involving the employee during the review period.

Graphic Ratings Method

A performance evaluation technique where employees are rated on predefined categories using a visual scale or graph.

Essay Method

A trait approach to performance rating that requires the rater to compose a statement describing employee behaviour.

Critical Incidents Method

A performance appraisal method focusing on the most significant actions of an employee, either positively or negatively impacting their job effectiveness.