_____, the Lesser Will Be the Effect of an Increase

question 9

Multiple Choice

_____, the lesser will be the effect of an increase in government spending on real GDP.

• A) The smaller the crowding-out effect
• B) The smaller the percentage of government spending financed by tax increases
• C) The larger the government budget surplus
• D) The more rapidly money is converted into goods
• E) The steeper the aggregate supply curve

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Definitions:

Respondeat Superior

A legal doctrine that holds an employer liable for the actions of an employee when the actions occur within the scope of employment.

Employer's Liability

The legal responsibility of employers to compensate employees for injuries or damages incurred in the course of employment.

Respondeat Superior

A legal principle that assigns legal liability to an employer or principal for the misconduct of an employee or agent when those actions are carried out in the course of their employment or representation.

Vicarious Liability

Legal responsibility assigned to an individual or entity for the actions of another, based on a particular relationship, such as employer-employee.