FIGURE 24-2 -Refer to Figure 24-2.Suppose the Economy Is in a Short-Run

question 129

Multiple Choice

FIGURE 24-2
-Refer to Figure 24-2.Suppose the economy is in a short-run equilibrium at Y₁.An appropriate fiscal policy for attaining potential output (Y^*) is a(n)

• A)increase in personal and corporate tax rates.
• B)increase in government spending.
• C)increase in current consumption.
• D)decrease in personal and corporate taxes.
• E)decrease in current imports.

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Definitions:

Formalization

The extent to which organizations use rules, procedures, and structured communication to govern behaviors and operations.

Centralization

The concentration of decision-making authority at higher levels within an organization.

Specialization

The process of focusing on a specific area of knowledge or skill, often to increase efficiency or expertise.

Organizational Structure

The system of tasks, workflows, reporting relationships, and communication channels that link together diverse parts of an organization.