FIGURE 22-5 Refer to Figure 22-5,Diagram 1

question 95

Multiple Choice

FIGURE 22-5 Refer to Figure 22-5,Diagram 1.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)increase transfer payments
• C)reduce taxes
• D)increase government spending
• E)increase disposable income

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Definitions:

Brain Stem

The Brain Stem is the posterior part of the brain, adjoining and structurally continuous with the spinal cord, responsible for controlling basic life functions.

Medulla

The innermost part of an organ or structure, such as the medulla oblongata in the brain which controls vital functions like breathing and heart rate.

Cerebrum

The largest part of the brain, responsible for voluntary actions, cognition, memory, and sensory processing.

Brain Stem

The part of the brain connecting the spinal cord with the forebrain and cerebrum, controlling vital functions such as breathing and heart rate.