If the Actual Output Lies Below Potential Output, Then an Appropriate

question 62

Multiple Choice

If the actual output lies below potential output, then an appropriate fiscal policy would be to _____, which will shift the _____ curve to the _____.

• A) increase government purchases; AD; left
• B) increase transfer payments; AS; right
• C) increase tax rates; AD; right
• D) increase government purchases; AD; right

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Definitions:

Credit Terms

Conditions under which credit is extended by a lender to a borrower, including interest rates, repayment schedule, and other critical terms of the credit agreement.

Identity Theft

Identity theft is the fraudulent acquisition and use of someone's private identifying information, typically for financial gain.

FTC

Stands for the Federal Trade Commission, a U.S. federal agency tasked with protecting consumers and maintaining competition.

Cosign

To sign a legal document alongside another person, taking joint responsibility for the obligation the document entails, such as a loan.