Suppose That the Economy Is in the Midst of a Recession.Which

question 236

Multiple Choice

Suppose that the economy is in the midst of a recession.Which of the following policies would most likely end the recession and stimulate output growth?

• A)A congressional proposal to incur a federal surplus to be used for the retirement of public debt.
• B)Reductions in agricultural subsidies and veterans' benefits.
• C)Postponement of a highway construction program.
• D)Reductions in federal tax rates on personal and corporate income.

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Definitions:

Limited Merchandise Assortment

A retail strategy focusing on carrying only a specific set of products, aiming for efficiency and depth in selected categories.

Outlet Stores

Retail stores that sell merchandise directly from manufacturers at reduced prices, often offering overstocked items, returned goods, or products from past seasons.

Off-price Retailers

Retailers that sell branded goods at significant discounts off the suggested retail price, typically by purchasing overstocked or out-of-season items.

Wholesale Prices

The cost of goods sold in large quantities primarily to retailers, distributors, or other merchants, rather than to end consumers.