Figure 12-1 -Refer to Figure 12-1.In This Situation, If Policymakers Want to If

question 146

Multiple Choice

Figure 12-1

-Refer to Figure 12-1.In this situation, if policymakers want to close the output gap with fiscal policies that will stimulate aggregate demand, what should they do?

• A)lower personal income taxes to encourage savings
• B)increase government spending
• C)loosen environmental regulations to lower businesses cost of production
• D)raise interest rates

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Definitions:

Nurture

The influence of environmental factors like education, culture, and personal experiences on the growth and development of an individual.

Accelerate

To increase speed, cause faster movement, or hasten development or progress.

Perceptual Abilities

Human capabilities related to the interpretation of sensory information to understand the environment.

Face-like Image

Visual stimuli that resemble a human face, often perceived due to the brain's pattern recognition capabilities.