Figure 12-3 -Refer to Figure 12-3. If the Aggregate Demand Curve Is

question 109

Multiple Choice

Figure 12-3
-Refer to Figure 12-3. If the aggregate demand curve is AD₀, which of the following is the most Jappropriate discretionary fiscal policy to pursue?

• A) increase government spending, increase individual income tax rates, and increase corporate income tax rates
• B) increase government spending, increase individual income tax rates, and decrease corporate income tax rates
• C) increase government spending, decrease individual income tax rates, and decrease corporate income tax rates
• D) maintain existing government spending, individual income tax rates, and corporate income tax rates

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Definitions:

Evolutionary Psychology

A theoretical approach in psychology that examines how evolutionary theory influences human thoughts, behaviors, and psychological traits.

Traits

Characteristic patterns of thought, feeling, and behavior that are relatively stable over time and across situations.

Reproductive Advantage

The genetic or behavioral characteristics that enhance an organism’s chances of reproducing and passing on its genes to the next generation.

Gender Differences

Variations in characteristics, behaviors, or roles typically associated with being male or female.