Refer to the Diagram

question 161

Multiple Choice

Refer to the diagram. If the full-employment level of GDP is D, then it would be appropriate fiscal policy for government to

• A) decrease spending and increase taxes.
• B) decrease spending and decrease taxes.
• C) increase spending and increase taxes.
• D) increase spending and decrease taxes.

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Definitions:

Joints

Natural fractures or separations in rocks without displacement, often formed by stresses such as contraction, expansion, or tectonic activities.

Faults

Fractures in the Earth's crust along which there has been significant displacement as a result of rock-mass movement.

Beds

Horizontal layers of sedimentary rock that display a planar or nearly planar bedding surface, indicating periods of deposition over time.

Strike-Slip Fault

A fault in which the relative movement is essentially horizontal, parallel to the strike of the fault surface.