Use the Following to Answer Questions

question 35

Multiple Choice

Use the following to answer questions .
Exhibit: Using the Aggregate Demand/Aggregate Supply Model 1
-(Exhibit: Using the Aggregate Demand/Aggregate Supply Model 1) Suppose the economy is initially in short-run equilibrium at B. If policy-makers decide to intervene to close the gap, which of the following can it do?

• A) Decrease personal income taxes.
• B) Increase government welfare spending.
• C) Decrease the level of government purchases of goods and services.
• D) Institute investment tax credits to encourage business investment.

---

Definitions:

Randomization

The process of randomly assigning study participants to different groups, such as treatment or control groups, to ensure objectivity and validity.

Group Assignment

A task or project assigned to a set of individuals expected to work collaboratively towards a common goal or outcome.

Construct

An abstract concept or theoretical entity that is created for the purpose of research or theory development.

Operational Definition

A clear, detailed description of how variables in a study are measured or manipulated.