Refer to the fiGures

question 31

Multiple Choice

Refer to the figures. Which of the following events would most likely result in higher unemployment?

• A) a shift from D2 to D1 in Figure A
• B) a shift from D2 to D3 in Figure A
• C) a shift from D2 to D1 in Figure B
• D) a shift from D2 to D3 in Figure B

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Definitions:

Taxable Income

The amount of income that is used to calculate an individual's or a company’s income tax due, after exemptions and deductions.

Operating Income

Earnings before interest and taxes (EBIT), representing a company's profit from regular operations, excluding non-operational income and expenses.

Retained Earnings

Profits that a company has earned to date, less any dividends or other distributions paid to shareholders.

Dividends

Payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders.