Question

Which of the following workers is most likely to lose their job during a recession?

Select one:

a. A teacher

b. A bank teller

c. A car assembly worker

d. A nurse

Intentional changes in government expenditures and taxes to influence GDP:

Select one:

a. are enacted by the Treasury

b. are intended to ease inflatory pressures

c. are discretionary fiscal policy measures

d. are automatic stabilisers

The intended goal of expansionary fiscal policy is:

Select one:

a. an increase in interest rates

b. a reduction of distribution of income inequality

c. an increase in the price level

d. an increase in the level of aggregate output

Answer 1

C.A car assembly worker
Reason: A recession has a domino effect, where increased unemployment leads to less growth and a drop in consumer spending, affecting businesses, which lay off workers due to losses.As the effects of a recession ripple through the economy, consumer confidence declines, perpetuating the recession as consumer spending drops. Comparatively to teacher,Bank teller and a nurse,worker job is not too secured.

C.are discretionary fiscal policy measures
Reason:Discretionary fiscal policy refers to any change in government spending or taxes that destabilizes the economy.the authority that the President has to change personal income tax rates.intentional changes in taxes and government expenditures made by Congress to stabilize the economy.the changes in taxes and transfers that occur as GDP changes.

D.an increase in the level of aggregate output
Reason:The goal of expansionary fiscal policy is to reduce unemployment. Therefore the tools would be an increase in government spending and/or a decrease in taxes. This would shift the AD curve to the right increasing real GDP.