If the Economy Has Been Producing at a Point Where

question 64

Multiple Choice

If the economy has been producing at a point where real GDP is less than potential GDP, what fiscal policy can the federal government use to restore real GDP to potential GDP?

• A)increase taxes
• B)decrease the quantity of money
• C)cut government expenditure on goods and services
• D)raise the interest rate
• E)cut taxes

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Definitions:

Achievement-Orientation

Achievement-orientation refers to an individual's or organization's focus and emphasis on setting goals and achieving results.

High Individualism

A cultural orientation where individual goals and independence are prioritized over group or collective goals.

Power Distance

The extent to which less powerful members of organizations and institutions accept and expect that power is distributed unequally.

Collectivist Value Orientation

This cultural value emphasizes the priority of group goals over individual goals and the importance of cohesion within social groups.