According to the IS-LM Model, in a Liquidity Trap an Increase

question 57

Multiple Choice

According to the IS-LM model, in a liquidity trap an increase in taxation, T, causes the level of output, Y, to:

• A)increase.
• B)decline.
• C)remain constant.
• D)fluctuate.

---

Definitions:

Procedural Unfairness

The perception that the processes and methods used to make decisions within an organization are unjust or biased.

Emotional Labour

The effort required to manage and regulate one's emotions to fulfill the emotional demands of a job.

Emotional Contagion

The phenomenon where emotions can be transferred from one person to another, influencing the emotional states of those around them.

Equity Theory

A theory of motivation that explains how individuals perceive fairness in distribution of resources within interpersonal relationships, affecting their satisfaction and productivity.