If the Economic Problem Is Low Productivity and High Unemployment,the

question 19

Multiple Choice

If the economic problem is low productivity and high unemployment,the fiscal policy action on the demand side would be to

• A)increase taxes.
• B)cut business taxes.
• C)increase spending.
• D)decrease spending.
• E)None of these answers is correct.

---

Definitions:

Producer Surplus

The difference between the amount a producer is willing to accept for a good or service and the actual amount received from its sale.

Supply Curve

A graphical representation showing the quantity of a good that producers are willing to supply at different prices.

Producer Surplus

The difference between the amount producers are willing and able to sell a good for and the amount they actually receive.

Equilibrium Price

The price at which the quantity of goods supplied matches the quantity of goods demanded in the market.