A Reason Why Discretionary Fiscal Policy Might Move the Economy

question 4

Multiple Choice

A reason why discretionary fiscal policy might move the economy away from potential GDP instead of toward potential GDP is that

• A) government programs are always expansionary.
• B) during a recession, politicians prefer increases in government spending over decreasing taxes.
• C) government programs automatically move real GDP away from potential GDP.
• D) it is difficult to know whether real GDP is above or below potential GDP.
• E) economic forecasts consistently underestimate the impact of fiscal policy.

Differentiate between various views on ethics, such as utilitarian, moral-rights, and individualism.

Recognize the importance of values, both personal and organizational, in ethical decision-making.

Identify the relationship between ethical perspectives and business practices.

Appreciate the role of justice, both distributive and procedural, in ethical considerations.

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Definitions:

Evaluate

To determine the worth of a given expression.

Simplify

To reduce a mathematical expression to its simplest form.

Simplify

To alter a mathematical expression or equation to make it easier to understand or work with, often by reducing it to its simplest form.

Evaluate

To evaluate in mathematics means to calculate the value of an expression by substituting numbers for variables and performing the indicated operations.