Both the Crowding-Out Effect and New Classical Model Indicate That

question 28

Multiple Choice

Both the crowding-out effect and new classical model indicate that

• A) expansionary fiscal policy is a highly effective weapon with which to fight an economic downturn.
• B) restrictive fiscal policy is a highly effective weapon with which to control inflation caused by excess demand.
• C) there are side effects of budget deficits that will substantially, if not entirely, offset their expansionary impact on aggregate demand.
• D) fiscal policy can be used effectively to restrain inflation but it is largely ineffective as a weapon against recession.

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Definitions:

Devil's Advocate

A role taken by someone in discussions or meetings to express a contrary opinion or explore potential flaws in an argument, focusing on critical thinking and counterargument.

Token Groups

Minorities within a larger group who are perceived or treated as representative of their particular category, often leading to stereotyping or differential treatment.

Cultural Background

The cultural context and environment in which a person was raised or identifies with, influencing their beliefs, values, and behaviors.

Task Functions

Activities performed by team members that contribute directly to the accomplishment of group objectives and goals.