If Policymakers Implement an Expansionary Fiscal Policy but Do Not

question 201

Multiple Choice

If policymakers implement an expansionary fiscal policy but do not take into account the potential for crowding out,the new equilibrium level of GDP is likely to

• A)be at potential GDP.
• B)be above potential GDP.
• C)be below potential GDP.
• D)There is insufficient information given here to draw a conclusion.

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Seniority System

A method of granting privileges, promotions, or pay based on the length of service or tenure with an employer, often used to determine priority in layoffs and job assignments.

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Younger Workers

Individuals in the workforce who are typically classified by a younger age range, often new entrants or those in the early stages of their careers.

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