The Traditional Phillips Curve Suggests That, If Government Uses an Expansionary

question 65

Multiple Choice

The traditional Phillips Curve suggests that, if government uses an expansionary fiscal policy to stimulate output and employment,

• A)unemployment may actually increase because of the crowding-out effect.
• B)tax revenues may increase even though tax rates have been reduced.
• C)the inflation rate will increase.
• D)the natural rate of unemployment may fall.

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Definitions:

Charismatic Leadership

A style of leadership where the leader uses their charm and appeal to inspire and motivate followers, often evoking high levels of enthusiasm and commitment.

Quarterly Profits

The net earnings of a company calculated after all expenses and taxes, reported on a quarterly basis to provide insights into its financial health.

Organizational Culture

The set of shared attitudes, values, goals, and practices that characterizes an institution or organization.

Financial Performance

A measure of how well a company can use assets from its primary mode of business and generate revenues.