FIGURE 22-5 Refer to Figure 22-5,Diagram 2

question 57

Multiple Choice

FIGURE 22-5 Refer to Figure 22-5,Diagram 2.Which of the following fiscal policy measures could the government implement to return national income to the full-employment level of GDP (potential output,Y*) ?

• A)reduce government spending
• B)reduce transfer payments
• C)increase taxes
• D)increase government spending
• E)decrease disposable income

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Definitions:

Minority Shareholders

Owners of a smaller portion of a company's shares, who have limited control or power over corporate decisions compared to majority shareholders.

Self-Dealing

An unethical business practice where an individual takes advantage of their position in a transaction for personal benefit, often at the expense of the interests of others.

Corporate Records

Documents and ledgers that are required to be maintained by a corporation, detailing its operations, financial status, and legal obligations.

Short-Form Merger

A merger between a subsidiary corporation and a parent corporation that owns at least 90 percent of the outstanding shares of each class of stock issued by the subsidiary corporation.