In a Certain Year, the Aggregate Amount Demanded at the Existing

question 42

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 $120 billion.To obtain price-level stability under these conditions, the government should

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

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Definitions:

Emotional Intelligence

The ability to recognize, understand, and manage our own emotions and the emotions of others effectively.

Integrity

The quality of being honest and having strong moral principles, often regarded as a fundamental trait for trustworthiness and ethical conduct.

Motivation

The internal and external factors that stimulate people to take actions that lead to achieving a goal.

Transactional Leaders

focus on the exchanges that occur between leaders and their followers, often emphasizing clear structures, rewards, and penalties.