If the Economy Is Experiencing Inflationary Boom, and the Government

question 57

Multiple Choice

If the economy is experiencing inflationary boom, and the government lowers taxes in an effort to balance the budget, the Keynesian model indicates the likely effect will be to

• A) counteract inflation.
• B) reduce the trade deficit.
• C) continue inflationary pressures.
• D) increase unemployment.

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Definitions:

Extra Day Off

An additional day granted to an employee for rest or leisure beyond regular days off or holidays.

Fewer Days

A reduction in the number of days allocated for a specific activity or purpose.

Psychological Empowerment

The feeling of confidence, autonomy, and control individuals experience in their actions, contributing to their motivation and effectiveness.

Environmental Causes

Factors within the environment that influence or result in certain outcomes, behaviors, or changes.