Many Provincial and Local Governments Find Themselves Faced with Increasing

question 15

Multiple Choice

Many provincial and local governments find themselves faced with increasing retirement expenditures for retired government employees.These increasing expenditures will ________ GDP because they are categorized as ________.

• A) increase; government purchases
• B) increase; gross private domestic investment
• C) decrease; state and local government purchases
• D) not change; transfer payments.

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Definitions:

Power

The ability to influence another person.

Agent

An individual or entity that acts on behalf of another person or group, often in a negotiation or transaction.

Target

A specific goal or objective that is aimed to be achieved.

Coercive Power

Power that is based on an agent’s ability to cause an unpleasant experience for a target.