If Government Uses Fiscal Policy to Restrain Cost-Push Inflation, We

question 120

Multiple Choice

If government uses fiscal policy to restrain cost-push inflation, we can expect

• A)the unemployment rate to rise.
• B)the unemployment rate to fall.
• C)the aggregate demand curve to shift rightward.
• D)tax-rate declines and increases in government spending.

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Definitions:

Common Stock

A type of equity security that represents ownership in a corporation, carrying voting rights and potential for dividends.

Par Value

The nominal or face value of a stock or bond, as stated by the issuer.

Fair Value

An estimate of the market value of an asset or liability, based on current conditions and agreed upon by both buyer and seller.

Goodwill

Goodwill is an intangible asset that arises when a company acquires another company for a premium value, representing elements such as brand reputation, customer relations, and intellectual property.