What Are the Two Tools of Fiscal Policy That Governments

question 21

Multiple Choice

What are the two tools of fiscal policy that governments can use to affect the level of aggregate demand?

• A) government spending and taxation
• B) government spending and technology improvements
• C) taxation and controlling imports
• D) taxation and controlling exports

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Definitions:

Fiedler's Contingency Theory

A leadership theory proposing that effective group performance depends on the proper match between a leader's style of interacting with subordinates and the degree to which the situation gives control and influence to the leader.

Relationship-Oriented

A focus or approach that prioritizes building and maintaining positive relationships among individuals or groups.

High-Control

Refers to a management style or organizational structure where decision-making and authority are centralized, and strict regulations guide operations and processes.

Assertive

The quality of being self-assured and confident without being aggressive, enabling clear and effective communication.