The "Yes - Markets Self-Adjust" Camp Argues That

question 292

Multiple Choice

The "Yes - Markets Self-Adjust" camp argues that

• A) expectations are more important than interest rates for business investment decisions.
• B) most shocks are external to the economy.
• C) demand shocks are more important than supply shocks for explaining business cycles.
• D) business expectations are quickly changeable.
• E) government is the solution to business cycles, not the problem.

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Definitions:

Incentive Plans

Compensation strategies designed to motivate employees by linking a portion of their pay directly to individual, team, or organizational performance.

Employee Behavior

Employee behavior encompasses the actions and conduct of individuals within a workplace, affecting productivity and workplace atmosphere.

Human Resource Department

The division within a business that is charged with overseeing employee benefits, recruitment, training, and compliance with labor laws.

Stock Options

A type of compensation provided by companies to employees in the form of equity, giving the employee the right to buy shares at a set price.