If the Actual Federal Budget Shows a Deficit but the Structural

question 22

Multiple Choice

If the actual federal budget shows a deficit but the structural budget deficit is falling,economists would conclude that

• A) the structural deficit is based on an incorrect estimate of potential output.
• B) the actual budget deficit should be revised to equal the structural deficit.
• C) government spending should be curtailed severely.
• D) current fiscal policy is probably doing a fair job of stabilizing the economy.
• E) the tax rate is too low.

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Definitions:

Communicating Negative Organizational News

The practice of sharing unfavorable information or updates within an organization in a way that minimizes harm and maintains trust.

Conveying

The act of communicating or transmitting information, ideas, or feelings from one person or place to another.

Information Channel

The medium through which information is transmitted from one place, person, or group to another.

Upward Communication

The process by which information or feedback travels from lower levels of a hierarchy to higher levels within an organization.