If Government Increases the Size of Its Full-Employment Surplus, We

question 197

Multiple Choice

If government increases the size of its full-employment surplus, we can:

• A)assume that government is causing interest rates to rise.
• B)not determine government's impact on the economy without also knowing the status of the actual budget.
• C)assume that government is having a contractionary effect on the economy.
• D)assume that government is having an expansionary effect on the economy.

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Definitions:

Agencies

Organizations or bodies, either government or private, that provide a specific service or perform a particular function.

Legal Rules

The established principles or guidelines that govern the operation of a legal system, including laws, regulations, and court decisions.

Negotiated Rulemaking Act

A U.S. federal law that aims to encourage agencies to use negotiated rulemaking to involve stakeholders in the drafting of rules.

Administrative Dispute Resolution Act

A law aimed at promoting the use of alternative dispute resolution processes, such as arbitration and mediation, within the U.S. federal government.