In the Classical Model,if Government Tries to Increase Employment and Output

question 147

Multiple Choice

In the classical model,if government tries to increase employment and output by increasing its own purchases,

• A) it will achieve its goal and economic conditions will improve
• B) it will not attain its objective unless it also decreases taxes
• C) its actions will cause the interest rate to rise,which will choke off investment spending
• D) firms will be motivated to increase their output,thereby creating even more jobs
• E) saving will also increase,as more people are employed

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Definitions:

Physiological Arousal

The body's response to external stimuli, resulting in physical and psychological reactions, such as increased heart rate and heightened alertness.

Worrying

The mental process of thinking about problems or unpleasant things that might happen in a way that makes you feel unhappy and frightened.

Bullied

The experience of being intimidated, harassed, or mistreated, typically by someone who is perceived to be more powerful.

Social Anxiety Disorder

A condition marked by intense fear of social situations, leading to avoidance and distress.