Suppose the Economy Is Initially at Point a in the Diagram

question 16

Multiple Choice

Suppose the economy is initially at Point A in the diagram. If an increase in investment spending causes a shift of the AD curve from AD1 to AD4, then the government can avoid a short run increase in inflation by

• A) increasing taxes so that the AD curve shifts back to AD1.
• B) increasing taxes so that the AD curve shifts further out to AD5.
• C) increasing government spending so that the AD curve shifts back to AD1.
• D) increasing government spending so that the AD curve shifts further out to AD5.

Grasp the concept of ethical behavior and its cultural context dependence.

Understand the role of ethical frameworks and spotlight questions in ethical decision-making.

Comprehend the factors influencing ethical managerial behavior, including personal, organizational, and external factors.

Recognize the stages of moral development according to Kohlberg and their implications on ethical leadership.

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Definitions:

Fixed-Ratio Schedule

In operant conditioning, a reinforcement schedule that reinforces a response only after a specified number of responses.

Specified Time

A clearly defined or identified moment or period on a timeline.

Unpredictable Time

Moments or durations that cannot be anticipated or forecasted with certainty.

Fixed-Ratio

A schedule of reinforcement where a response is rewarded only after a specified number of responses.