Assume the Economy Is in a Boom Period

question 52

Multiple Choice

Assume the economy is in a boom period. The increase in revenues in the economy has caused government revenues to increase. As a result, the federal government's budget now shows a surplus. If Congress increases government expenditures:

• A) inflation would likely result.
• B) unemployment would increase.
• C) the economy would stabilize at a higher rate of growth.
• D) a government deficit would occur.

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Definitions:

Vertically Integrated

A strategy where a company expands its business operations into different steps on the same production path, such as when a manufacturer also controls the distribution and retail levels of their product.

Centralized

An organizational structure where decision-making authority is concentrated at the top levels of management.

Departmentalization

The process of dividing an organization into different departments or units based on functions, products, or geographical locations for efficiency.

Empowering

Giving employees the authority, resources, and opportunity to make decisions and contribute to the organization’s success..