A Flat IS Curve Implies That

question 33

Multiple Choice

A flat IS curve implies that

• A)an increase in money supply will change output by a relatively small amount.
• B)a decrease in taxes will change output by a relatively large amount.
• C)changes in money supply will have large multiplier effects on output.
• D)A and B.

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Definitions:

Job Performance

The evaluation of how effectively an individual performs the tasks, duties, and responsibilities associated with their job role.

Individual's Ability

The capacity or skillset possessed by a person, which can influence their performance in various tasks.

Motivation

The inner drive or factors that stimulate individuals to take actions towards achieving their goals or satisfying their needs.

Frederick Herzberg

An influential American psychologist known for developing the Motivation-Hygiene Theory, which distinguishes between factors that create job satisfaction (Motivators) and those that prevent dissatisfaction (Hygiene factors).