An Increase in Government Spending Is More Likely to Have

question 48

Multiple Choice

An increase in government spending is more likely to have a positive impact on jobs and output when

• A) the unemployment rate is below the natural rate.
• B) real GDP is above potential GDP.
• C) the business cycle is near the peak.
• D) the economy is in a recession.

---

Definitions:

Intrinsic Goals

Objectives that are pursued for their own sake, driven by an inherent interest or enjoyment in the task, rather than external rewards.

Universal Needs

Fundamental requirements or desires common to all human beings, such as food, safety, and belonging.

Praised For Working Hard

The act of recognizing and appreciating someone's effort and diligence in their tasks or responsibilities.

Avoidance Motivation

Refers to the drive to avoid negative outcomes, leading individuals to act in ways that prevent unpleasant situations.