Refer to the Graphs $A D _ { 2 }$ And AS Intersect
in Graph 1, and Also Assume That

question 38

Multiple Choice

Refer to the graphs. Assume that the economy is initially at equilibrium where AD $A D _ { 2 }$ and AS intersect
In Graph 1, and also assume that the economy is initially at point C in Graph 2. If the government
Implements a contractionary or restrictive policy, it would make the economy in graph 2

• A) move from point C to point B.
• B) move from point C to point A.
• C) move from point C to point D.
• D) remain at point C.

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Definitions:

Significant Influence

A level of control that an investor has over a business entity, typically through ownership of a significant but not majority share of voting stock.

Consolidated Statement

A financial statement that aggregates the financial positions and results of operations of a parent company and its subsidiaries, presenting them as a single economic entity.

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been deducted from revenues.

Non-Controlling Interest

A stake in a corporation that is owned by investors who are not affiliated or connected with the parent company, representing a portion of equity ownership in a subsidiary not wholly owned by the parent.