The Graph Shown Displays Various Economic Outcomes

question 15

Multiple Choice

The graph shown displays various economic outcomes. If the economy is currently at equilibrium D, to bring the economy back to its long-run equilibrium the government might:

• A) decrease spending.
• B) decrease income taxes.
• C) increase corporate income taxes.
• D) All of these would move the economy back to its long-run equilibrium from point D.

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Definitions:

Multivariate Data

Data involving two or more variables that are analyzed together to understand relationships and interactions between them.

Nominal Variables

Factors that denote classifications lacking any inherent sequence or hierarchy.

Pie Charts

A pie chart that uses slices to depict proportions of numbers.

Bar Charts

Visual representations that use bars to compare different categories or groups of data.