The Diagram Below Shows an AD/AS Model for a Hypothetical

question 46

Multiple Choice

The diagram below shows an AD/AS model for a hypothetical economy which is initially in a short-run equilibrium at point A. FIGURE 24-6 Refer to Figure 24-6.The government could close the existing output gap by

• A)increasing the net tax rate.
• B)decreasing the net tax rate.
• C)decreasing government purchases.
• D)decreasing government transfer payments.
• E)implementing a contractionary fiscal policy.

---

Definitions:

Memory B-Cells

A type of white blood cell involved in the immune response, capable of remembering past infections and pathogens to produce a quicker response upon re-exposure.

B-Lymphocytes

A type of white blood cell that plays a crucial role in the immune system by producing antibodies, which help fight off infections and diseases.

Antigens

Substances that the immune system recognizes as foreign or dangerous, prompting an immune response.

Cardiac Output

The amount of blood pumped by the heart. One of the two major variables that determine blood pressure. Cardiac output is itself determined by two other variables: the rate at which the heart beats (commonly measured in beats per minute) and the amount of blood ejected from the heart (stroke volume). See also total peripheral resistance.