How Might Fiscal Policy Be Used to Correct an Inflationary

question 32

Multiple Choice

How might fiscal policy be used to correct an inflationary gap?

• A) The exchange rate would be adjusted to encourage imports.
• B) The exchange rate would be adjusted to discourage imports.
• C) Government spending would be adjusted to reduce consumer spending.
• D) Business operations would be regulated by the government to become more efficient.

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Definitions:

Integrated Involvement

A holistic approach that encompasses the full participation and engagement of individuals in both work and non-work activities, aiming for balanced life roles.

Task Functions

Activities or roles performed by group members that contribute directly to the achievement of its objectives.

Maintenance Functions

Tasks or activities carried out to preserve or enhance the stability and effectiveness of groups or systems, ensuring their continued operation and longevity.

Work Team

A group of individuals working together towards a common goal, often with complementary skills and a strong sense of shared purpose.