When Organizations Grow in Size,adding Levels of Management and Thereby

question 102

Multiple Choice

When organizations grow in size,adding levels of management and thereby lengthening the chain of command,they tend to get __________.

• A)Taller.
• B)Shorter.
• C)Flatter.
• D)Wider.
• E)Narrower.

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Definitions:

Contractionary Fiscal Policy

A decrease in government purchases, increase in net taxes, or some combination of the two aimed at reducing aggregate demand enough to return the economy to potential output without worsening inflation; fiscal policy used to close an expansionary gap.

Contractionary Monetary Policy

A monetary policy strategy used by central banks to reduce inflation and cool an overheating economy by raising interest rates and decreasing the money supply.

Nominal GDP

The total value of all goods and services produced in a country, measured in current prices without adjusting for inflation.

Aggregate Demand

represents the total demand for all final goods and services in an economy at a given time and price level.