Using Figure 11

question 98

Multiple Choice

Using Figure 11.1,which fiscal policy action would increase aggregate demand from AD₁ to AD₃?

• A)A decrease in transfer payments.
• B)A decrease in taxes.
• C)A decrease in government spending.
• D)A decrease in government spending matched by an equal decrease in taxes.

---

Definitions:

Net Margin

A profitability metric that calculates the percentage of revenue remaining after all operating expenses, interest, taxes, and preferred stock dividends have been deducted.

Balanced Scorecard

A system for strategic planning and management utilized by organizations to ensure business activities are in line with the organization’s vision and strategy, enhance communications both internally and externally, and track the performance of the organization in relation to its strategic objectives.

Internal Process Improvement

The systematic practice of reviewing and enhancing organizational processes to boost efficiency, effectiveness, and quality.

Staff Turnover

The rate at which employees leave a company and are replaced by new hires, affecting the organization's stability and performance.