Which of the Following Statements Is True

question 2

Multiple Choice

Which of the following statements is true?

• A)A change in government purchases affects income.However, the change in income does not affect consumption.
• B)A change in government purchases does not affect income or consumption.
• C)A change in government purchases affects GDP, which is the same as income.The change in income affects consumption.
• D)A change in government purchases affects GDP but not income.
• E)A change in government purchases has no effect on GDP, but it does affect consumption.

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Definitions:

Positive Affect

A psychological term that denotes the experience of pleasurable emotions such as joy, satisfaction, and enthusiasm.

Routine Work

Tasks or jobs that are highly repetitive and predictable, often requiring little creativity or problem-solving.

Open Innovation

A paradigm that assumes firms can and should use external ideas as well as internal ideas, and internal and external paths to market, as the firms look to advance their technology.

Survey Feedback

A method of organizational development involving the collection of employees’ opinions through surveys and then sharing the results with them to initiate changes.