Use the Following Figure to Answer the Questions : Figure

question 52

Multiple Choice

Use the following figure to answer the questions : Figure 8.5:
- In Figure 8.5,if this economy's inflation goal is a price level of P₂ but the equilibrium price level is P₃,one way to accomplish this using fiscal policy would be to

• A)Decrease AD by decreasing income taxes.
• B)Decrease AS by decreasing the money supply.
• C)Decrease AD by reducing transfer payments.
• D)Increase AS by reducing government regulations.

---

Definitions:

Twelve-Month Period

Refers to any continuous period of twelve months used for financial, operational, or reporting purposes.

Federal Overtime Provisions

Regulations established by federal law that require employers to pay employees extra compensation for hours worked in excess of a standard workweek.

Forty Hours

Refers to the standard full-time working hours in a week for many employment contracts, typically 8 hours a day for 5 days.

Work Visa

A government-issued document that allows a foreign individual to enter a country for the purpose of employment for a specified period of time.