An Intended Goal of Contractionary Fiscal Policy and a Tightening

question 30

Multiple Choice

An intended goal of contractionary fiscal policy and a tightening of monetary policy is

• A) an increase in interest rates.
• B) an increase in the price level.
• C) a decrease in the unemployment rate.
• D) a decrease in the level of aggregate output.

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Definitions:

Degree of Rivalry

The intensity of competition among existing competitors in a market.

Threat of New Entrants

The potential risk posed by the possibility of new companies entering a market, which can impact the competitive environment and profitability for existing players.

Bargaining Power

The leverage that a party has in negotiations, affecting the terms and conditions of agreements.

Socio-Cultural

Relating to the interaction of social and cultural elements in society, influencing behaviors, values, practices, and institutions.