A Reason Why Discretionary Fiscal Policy Might Move the Economy

question 120

Multiple Choice

A reason why discretionary fiscal policy might move the economy away from potential GDP
Instead of toward potential GDP is that

• A)government programs are always expansionary.
• B)economic forecasts consistently underestimate the impact of fiscal policy.
• C)government programs automatically move real GDP away from potential GDP.
• D)it is difficult to know whether real GDP is above or below potential GDP.
• E)during a recession, politicians prefer increases in government spending over decreasing taxes.

Comprehend the role of task structure, follower readiness, and position power in leadership effectiveness.

Understand the distinctions between task-oriented, relations-oriented, supportive, directive, participative, and laissez-faire leadership styles.

Grasp the relevance of early research findings in the field of leadership, including the outcomes of trait and behavioral approaches.

Acknowledge the complexities involved in leadership effectiveness, including the interaction between leaders' behaviors and situational variables.

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Definitions:

Situation Analysis

An assessment process that involves evaluating the internal and external factors affecting an organization's performance to identify potential opportunities and threats.

Internal Environment

Refers to the conditions, entities, events, and factors within an organization that influence its activities and choices, including its employees, management, corporate culture, and internal processes.

External Environment

All external factors outside of an organization that affect its operations, including market trends, economic conditions, and regulatory landscape.

Market-oriented

An approach or strategy that prioritizes understanding and meeting the desires and needs of customers within a market.