Exhibit 11-8 Aggregate Demand and Supply Curves

question 4

Multiple Choice

Exhibit 11-8 Aggregate demand and supply curves

In Exhibit 11-8, supply-siders claimed that the shift from AS₁ to AS₂ would occur if the government:

• A) increased tax rates and increased the amount of government regulation.
• B) increased tax rates and decreased the amount of government regulation.
• C) decreased tax rates and increased the amount of government regulation.
• D) decreased tax rates and decreased the amount of government regulation.

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Definitions:

Relatedness

A sense of connection or belonging to others, often considered a fundamental human need influencing motivation and mental health.

Growth

The process of increasing in size, amount, or importance.

Maslow's Hierarchy

A theory of psychological health predicated on fulfilling innate human needs in priority, culminating in self-actualization.

Physiological

Relates to the functions and activities of living organisms and their parts.