In a Certain Year the Aggregate Amount Demanded at the Existing

question 207

Multiple Choice

In a certain year the aggregate amount demanded at the existing price level consists of $100 billion of consumption, $40 billion of investment, $10 billion of net exports, and $20 billion of government purchases.Full-employment GDP is $200 billion.To obtain full employment under these conditions, the government should

• A)encourage personal saving by increasing the interest rate on government bonds.
• B)decrease government expenditures.
• C)reduce tax rates and/or increase government spending.
• D)discourage private investment by increasing corporate income taxes.

---

Definitions:

Priorities Clear

emphasizes the importance of establishing and understanding which tasks or goals are most essential and should be addressed first.

Open Minded

The willingness to consider and accept new and diverse perspectives, ideas, and experiences without prejudice.

Ohio State Studies

A series of studies that identified two critical dimensions of leader behavior: consideration (focusing on the well-being and needs of team members) and initiating structure (organizing work tasks and roles).

Leader Behaviors

Actions and attitudes exhibited by individuals in leadership positions as they guide, influence, or direct others.