Contractionary Fiscal Policy to Prevent Real GDP from Rising Above

question 302

Multiple Choice

Contractionary fiscal policy to prevent real GDP from rising above potential real GDP would cause the inflation rate to be ________ and real GDP to be ________.

• A)higher; higher
• B)higher; lower
• C)lower; higher
• D)lower; lower

Understand the significance of performance standards and their relationship with variances.

Describe the characteristics of effective controls in organizations.

Grasp the concept of cost-effectiveness in control mechanisms.

Understand the necessity of flexibility in organizational controls.

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Definitions:

Coercive Power

The extent to which a manager can deny desired rewards or administer punishment to control other people.

Extrinsic Rewards

Valued outcomes given by some other person.

Intrinsic Rewards

Intrinsic rewards are valued outcomes received directly through task performance.

Zone Of Indifference

A range within which individuals are willing to accept directives or changes without resistance, often related to authority or persuasion.