In Figure 8

question 59

Multiple Choice

In Figure 8.5,according to Keynesians,if equilibrium real output is Q₁ and full-employment real output is Q₂,an appropriate fiscal policy lever would be to

• A)Increase AD by increasing income taxes.
• B)Increase AD by increasing government spending.
• C)Increase AS by reducing government regulations.
• D)Reduce AS by tightening air pollution standards to improve air quality.

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Definitions:

Negative Reinforcement

A behavioral psychology term referring to the removal of an unpleasant stimulus to increase the likelihood of a behavior being repeated.

High Grades

Marks or scores that are significantly above average, indicating a high level of performance or achievement.

Failure

The lack of success in achieving a goal or fulfilling a task, often seen as an opportunity for learning and growth.

Escape Learning

A form of learning where the subject acquires a response to avoid an unpleasant or aversive stimulus.