In Response to a Negative Supply Shock, the Government Decreases

question 296

Multiple Choice

In response to a negative supply shock, the government decreases taxes. The MOST likely result of the government's tax decrease is a(n) _____ in unemployment and a(n) _____ in the aggregate price level.

• A) decrease; increase
• B) decrease; decrease
• C) increase; increase
• D) increase; decrease

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Definitions:

Critical Communication Skills

Essential abilities required for effective communication, such as listening, articulating, and adapting messages to the audience.

Employers

Individuals or organizations that hire and pay people to work for them.

Communication Medium

The form in which a message is presented; the three primary categories of media are oral, written, and visual.

Potential Distractions

Elements or factors that can divert attention away from the task at hand, reducing focus and productivity.