The Crowding-Out Effect Implies That Restrictive Fiscal Policy Will

question 144

Multiple Choice

The crowding-out effect implies that restrictive fiscal policy will

• A) increase aggregate demand and employment.
• B) lead to a significant increase in the natural rate of unemployment.
• C) be highly effective against inflation.
• D) reduce real interest rates.

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Definitions:

HR Projection

The activity of predicting the future human resources requirements to achieve the anticipated levels of business operations.

Competitive Advantage

An attribute or condition that provides a business with a superior stance or leverage against its competitors.

Firm-specific Human Capital

Refers to the unique skills, knowledge, and abilities employees develop that are specifically valuable to their current employer.

Generic Human Capital

The competencies, knowledge, skills, and abilities that are held by individual employees and that are useful to the firm.