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

---

Definitions:

Product Life Cycle

The stages a product goes through from introduction to the market, through growth and maturity, and ultimately into decline.

Growth Stage

A phase in a business or product life cycle characterized by rapid revenue and customer base expansion, often requiring increased marketing and production to meet demand.

OM Strategies

Approaches and methods applied in operations management to ensure efficient and effective production and business operations.

Product Reliability

The likelihood of a product to perform its required functions under stated conditions for a specified period.