Which of the Following Policies Shifts the AD Curve the Farthest

question 173

Multiple Choice

Which of the following policies shifts the AD curve the farthest leftward?

• A) a rise in taxes of $10 billion
• B) a cut in taxes of $10 billion
• C) a decrease in government expenditure of $10 billion
• D) a decrease in both government expenditure and taxes of $10 billion

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Definitions:

Team Spirit

The sense of camaraderie and unity among members of a group, motivating collaboration towards common goals.

Adversary

An opponent or competitor in a conflict or contest.

Monetary Rewards

Financial or material compensations given to employees as recognition for their work or performance.

Micromanagement

A controlling style of management where a leader closely observes or controls the work of their subordinates, often with excessive attention to minor details.