Use the Following to Answer Questions

question 61

Multiple Choice

Use the following to answer questions:
Figure: AD-AS Model I
-(Figure: AD-AS Model I) Refer to Figure: AD-AS Model I. If the economy is at point X, the appropriate fiscal policy is to:

• A) increase taxes and decrease government spending.
• B) decrease taxes and increase government spending.
• C) increase the money supply and interest rates.
• D) decrease the money supply and interest rates.

---

Definitions:

Self-Worth

A personal assessment of one's value or worth as perceived by the individual.

Relative Superiority

The concept of being better or having more advantage in comparison to others based on specific criteria or standards.

Individual Mobility

The ability of an individual to move within or between social strata or occupational positions in a society.

Stereotype Threat

The risk of confirming, as self-characteristic, a negative stereotype about one's group, which can reduce the performance in affected individuals.