If a "Liberal" Wanted to Decrease Aggregate Demand, Which of the Following

question 30

Multiple Choice

If a "liberal" wanted to decrease aggregate demand, which of the following would she tend to favor?

• A)An increase in government spending, because it will increase the size of the public sector.
• B)A decrease in government spending, because it keeps the public sector small.
• C)An increase in transfer payments, because it has a larger multiplier than tax changes.
• D)An increase in taxes, because it makes the public sector larger.

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Definitions:

Organizational Support

The extent to which an organization values its employees' contributions and cares about their well-being.

Employee Compensation

The total amount of remuneration and benefits an employee receives from an employer in exchange for their work or services.

Norm of Reciprocity

A social norm that expects individuals to repay, in kind, what another has provided or done for them.

Management Ability

The competence or skillset required to control, direct, and administer resources, tasks, or people effectively in an organizational setup.