Use the Following to Answer Questions

question 153

Multiple Choice

Use the following to answer questions .
Exhibit: Fiscal Policy 2
-(Exhibit: Fiscal Policy 2) Suppose real GDP is equal to Y_r. If policymakers want to close the output gap with demand management policies, what should they do?

• A) lower corporate profit tax rates to encourage investments
• B) increase investment tax credits to businesses
• C) decrease government spending on transfer payments and on final goods and services
• D) lower interest rates

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Definitions:

Network Of Friends

A social structure made up of individuals (friends) connected by various social relationships, such as friendship, work, or shared interests.

Latent Coalitions

Potential alliances or partnerships that are not yet active or apparent.

Interest Groups

Organizations formed by individuals sharing common objectives, seeking to influence public policy or decision-making.

Interchangeability

The quality of being able to be exchanged with something else without making any difference or loss of function.