The Government Might Increase Its Spending to End a Recession

question 7

Multiple Choice

The government might increase its spending to end a recession because:

• A)allowing the short-run aggregate supply to adjust back to the long-run can take a long time.
• B)the economy experiences lower prices at the long-run equilibrium.
• C)the economy enjoys a higher level of output in the long run.
• D)None of these justify why the government might change its spending to end a recession.

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Definitions:

Procedures

Established methods or protocols followed in order to accomplish tasks or operations consistently and efficiently.

Personnel

Refers to the employees or staff of an organization, often used interchangeably with "human resources" to denote the workforce component.

Productivity

The measure of efficiency in converting inputs into useful outputs, typically assessed in terms of the ratio of output to input.

Organizational Charts

Diagrams that display the structure of an organization and the relationships and relative ranks of its parts and positions/jobs.