Suppose There Are Two Policy Options Facing a Vote in Parliament.In

question 89

Multiple Choice

Suppose there are two policy options facing a vote in Parliament.In the first,government spending will increase $50 billion,while the second option is to cut taxes by $50 billion.A Keynesian economist would argue for

• A)the tax option because it also affects the incentives workers face.Long-run aggregate supply will increase with the tax cut,but not with the spending increase.
• B)the tax option because it is easier to pass.The effects on total spending would be identical.
• C)the spending option because it won't affect the deficit the way the tax cut would.
• D)the spending option because it has a bigger impact on total spending.The spending directly raises total spending plus it works through the multiplier,while the tax cut only works through the multiplier.

Evaluate the influence of external framing and cognitive shortcuts on decision-making processes.

Understand the paradox of choice and its implications for decision satisfaction.

Define and identify the impact of mental sets on solving problems.

Recognize the role of restructuring and insight in overcoming problem-solving obstacles.

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Definitions:

Business Reports

Documents that provide analysis and information on business performance, often used to support decision-making processes.

Keywords

Specific words or phrases used to optimize searchability or emphasize important aspects in a text.

Journalistic Writing Style

A writing style characterized by objectivity, conciseness, and clarity, often used in news reporting and feature articles.

Formal Message

A communication that follows a structured format, often used in professional or official contexts.