Exhibit 11-6 Aggregate Demand and Supply Model

question 72

Multiple Choice

Exhibit 11-6 Aggregate demand and supply model

In Exhibit 11-6, if the aggregate demand curve is at AD₁, the government should:

• A) raise taxes to move to AD₂.
• B) cut taxes to move to AD₂.
• C) cut taxes to move to AD₃.
• D) cut spending to move to AD₂.

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Definitions:

Gamete

A mature haploid male or female germ cell that is able to unite with another of the opposite sex in sexual reproduction to form a zygote.

Condom

A contraceptive device usually made of latex or polyurethane, worn on the penis or inserted into the vagina to prevent pregnancy and reduce the risk of sexually transmitted infections.

Orchidotomy

A surgical procedure involving the removal of one or both testicles.

Hydrocele

A fluid-filled sac around a testicle, often leading to swelling of the scrotum, usually painless and common in newborns.