Table 12.3 -Refer to Table 12.3.Consider the Hypothetical Information in the Table

question 62

Multiple Choice

Table 12.3
-Refer to Table 12.3.Consider the hypothetical information in the table above for potential real GDP, real GDP, and the price level in 2017 and in 2018 if the federal government does not use fiscal policy.If the federal government wants to keep real GDP at its potential level in 2018, it should

• A)buy Government of Canada bonds.
• B)conduct expansionary fiscal policy.
• C)decrease government purchases.
• D)decrease the discount rate.
• E)increase infrastructure investment.

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Definitions:

Internal Management

The processes, policies, and procedures that govern the day-to-day operations and decision-making within an organization or entity.

Corporate Structure

The organizational design and operational framework of a corporation, defining its departments, roles, authorities, and communication processes.

Nonprofit Corporation

A legal entity organized for a public or social benefit, exempt from paying income tax on the money it earns.

Public Corporation

A company whose shares are publicly traded on the stock exchange and is subject to specific reporting and regulatory requirements.