Use the Following to Answer Questions

question 43

Multiple Choice

Use the following to answer questions:
-(Figure: Short- and Long-Run Equilibrium II) Refer to Figure: Short- and Long-Run Equilibrium II. Which action would be the appropriate response on the part of the government upon viewing the state of the economy?

• A) Increase government spending to close the recessionary gap.
• B) Decrease government spending to close the recessionary gap.
• C) Lower tax rates to close the inflationary gap.
• D) Raise tax rates to close the inflationary gap.

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Definitions:

Interposition

A visual cue that allows us to perceive the depth by understanding that if one object partly blocks another, the blocking object is closer to the observer.

Texture Gradient

A visual cue used to perceive depth, where the texture of a surface appears denser as the distance from the observer increases.

Relative Size

A perceptual clue that allows the observation of the size of an object in relation to other objects in its surrounding, contributing to the perception of depth.

Reversible Figures

Optical illusions or images that can be perceived in more than one way, demonstrating the brain's interpretative processes.