If Consumption Decreases, the Existence of the Government Spending Multiplier

question 95

Multiple Choice

If consumption decreases, the existence of the government spending multiplier effect means that in order to counter the recession

• A) the government cannot use fiscal policy.
• B) the government is forced to use both tax cuts and increases in .
• C) fiscal policy needs to raise by less than the decrease in .
• D) fiscal policy needs to raise by more than the decrease in .

Evaluate the impact of system justification and social dominance theories on group behavior.

Understand the methodologies and findings of memory studies.

Identify factors that influence memory recall and recognition.

Differentiate between types of memories, such as flashbulb, autobiographical, and eyewitness memories.

---

Definitions:

Sales Revenue

The total amount of money generated from selling goods or services to customers.

Direct Labour Costs

The total expenses associated with paying workers who directly manufacture a product or perform a service.

Prime Costs

These are the direct costs of manufacturing a product, including direct materials and direct labor.

Baker's Salaries

Compensation provided to bakers, who are skilled individuals responsible for baking bread, pastries, and other confectioneries.