If the Economy Is on the Steep Portion of the AS Curve

question 116

Multiple Choice

If the economy is on the steep portion of the AS curve and taxes decrease, ________ crowds out ________.

• A) consumption; planned investment
• B) government spending; planned investment
• C) planned investment; consumption
• D) planned investment; government spending

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Definitions:

Eligible Employee

An employee who meets the criteria set forth by an employer or government to receive benefits or participate in programs.

Cultural Relativism

The principle that an individual's beliefs and activities should be understood by others in terms of that individual's own culture, emphasizing that no culture is superior to another.

Ethical Behavior

Acting in ways consistent with one’s personal values and the commonly held values of the organization and society.

Economic Self-interest

Economic self-interest is the motivation driving individuals or entities to make decisions that result in the greatest personal financial advantage.