Suppose the Economy Is Growing at 4% a Year, Inflation

question 296

Multiple Choice

Suppose the economy is growing at 4% a year, inflation is measured at 0.5% a year, and the federal deficit is relatively high. An economist who suggests that nothing needs to be done is advocating a(n)

• A) annually balanced budget.
• B) cyclically balanced budget.
• C) functional finance approach to federal budgeting.
• D) full employment balanced budget.

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Definitions:

Mob Action

Refers to actions or activities carried out by a large group of people, often in an unruly or violent manner.

Contagion Theory

A theory in social psychology that explains how ideas, attitudes, and behaviors can spread rapidly through crowds or groups, akin to the spread of diseases.

Le Bon's

Refers to theories or principles by Gustave Le Bon, notably on crowd psychology, suggesting that crowds operate on irrational, emotional forces.

Resource Mobilization

The process of gathering and managing resources (financial, human, informational) for the purpose of achieving organizational or group objectives.