When the Economy Is Operating Well Below Capacity,an Increase in Spending

question 107

Multiple Choice

When the economy is operating well below capacity,an increase in spending tends to be reflected primarily in a(n) :

• A) lower level of employment.
• B) increase in price.
• C) lower level of output.
• D) higher level of output and employment.
• E) increase in business failures.

---

Definitions:

Sarbanes-Oxley Act

The Sarbanes-Oxley Act is a United States federal law enacted in 2002 to protect investors by improving the accuracy and reliability of corporate disclosures.

Corporate Governance Requirements

Guidelines and rules that dictate how a company is operated and controlled, focusing on the relationship between the board, shareholders, and other stakeholders.

Public Company

A company whose shares are traded freely on a stock market, with disclosure of financials and other significant information to the public.

Federal Government

The Federal Government is the national government of a federation, responsible for governing the entire country and managing affairs that go beyond the jurisdiction of individual states or provinces.