Use the Following to Answer Questions

question 4

Multiple Choice

Use the following to answer questions:
-(Figure: Fiscal Policy Options) Refer to Figure: Fiscal Policy Options. If the aggregate demand curve is AD', the most appropriate discretionary fiscal policy is to _____ government spending and _____ income tax rates.

• A) increase; increase
• B) increase; decrease
• C) decrease; increase
• D) decrease; decrease

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Definitions:

Allergic Reactions

Adverse and sometimes severe responses of the immune system to foreign substances, such as certain foods, pollen, or medications.

Immune System Reaction

The response of the immune system to foreign substances or pathogens, aiming to protect the body from infection or disease.

Viruses

Microscopic infectious agents that can only replicate inside the living cells of an organism and are capable of causing diseases.

Foreign Substance

A material or substance present in an organism or system that is not naturally produced or expected to be in that environment.