In the Short Run, with Prices Fixed, How Would an Increase

question 1

Multiple Choice

In the short run, with prices fixed, how would an increase in government spending affect the DD-AA equilibrium?

• A) It will increase output and appreciate the currency.
• B) It will increase output and depreciate the currency.
• C) It will decrease output and appreciate the currency.
• D) It will decrease output and depreciate the currency.
• E) It will increase output and have no effect on the currency.

---

Definitions:

Telling Style

A leadership approach where instructions are given directly and control is maintained by the leader.

Consideration

In leadership, the degree of empathy, respect, and support a leader provides to their team members.

Theory Y

A management concept developed by Douglas McGregor suggesting that workers are naturally motivated, responsible, and capable of self-direction and creativity at work.

Organizational Problems

Issues or barriers that impede a company's progress towards its goals, which can arise from internal inefficiencies, external pressures, or a combination of both.