In an Economy Experiencing a High Unemployment Rate,appropriate Fiscal Policy

question 30

Multiple Choice

In an economy experiencing a high unemployment rate,appropriate fiscal policy would attempt to

• A) wait for wages and other input prices to fall.
• B) discourage firms from investing.
• C) increase personal tax rates.
• D) reduce welfare payments to households.
• E) shift the aggregate demand curve to the right.

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Definitions:

Unlimited Liability

A legal situation in which the owners of a business are personally responsible for all the debts and liabilities of the business.