Assume Individuals Consider Only the Long Run Effects of Changes

question 36

Multiple Choice

Assume individuals consider only the long run effects of changes in future macro variables when forming expectations of future output and future interest rates.Suppose individuals expect future government spending to increase.Given this information,individuals will expect

• A)an increase in the expected future interest rate and no change in expected future output.
• B)an increase in the expected future interest rate and an increase in expected future output.
• C)an increase in the expected future interest rate and a reduction in expected future output.
• D)an increase in the expected future interest rate and an ambiguous effect on expected future output.

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Definitions:

Employer Responsibility

The legal and ethical obligations of employers towards their employees, including providing safe working conditions and fair compensation.

Payroll Items

Components that make up the total compensation package on an employee's pay, including wages, salaries, benefits, taxes, and deductions.

Employer Responsibility

Obligations that an employer has towards their employees, which may include providing a safe working environment, fair wages, and complying with employment laws.

Employee Responsibility

The obligation of employees to complete assigned tasks, adhere to the company's policies, and act in the company’s interest.