FIGURE 22-4 -Refer to Figure 22-4. the Rotation from AE0 to AE1

question 84

Multiple Choice

FIGURE 22-4
-Refer to Figure 22-4. The rotation from AE0 to AE1 could be caused by

• A) a higher net tax rate.
• B) a lower net tax rate.
• C) a balanced budget.
• D) lower government purchases.
• E) higher government purchases.

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Definitions:

Sanctions

Penalties or coercive measures imposed by countries or institutions to enforce obedience or regulate behavior.

Norms Enforced

The process by which social norms or expectations are upheld and followed within a society or group.

Moral Holiday

A specified time period during which some norm violations are allowed.

Negative Sanctions

Penalties or punishments imposed on individuals or groups to discourage nonconformity to societal norms or laws, ranging from informal disapproval to formal legal penalties.