Exhibit 15-6 Aggregate Demand and Supply Model

question 14

Multiple Choice

Exhibit 15-6 Aggregate demand and supply model

In Exhibit 15-6, if the aggregate demand curve is at AD₃, the government should:

• A) raise taxes to move to AD₁.
• B) cut taxes to move to AD₂.
• C) not change its behavior.
• D) cut spending to move to AD₂.

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Definitions:

Nucleolus

Specialized structure in the cell nucleus formed from regions of several chromosomes; site of assembly of the ribosomal subunits.

Ribosomal RNA

A type of RNA that, together with proteins, forms the structure of ribosomes, the cellular machinery responsible for protein synthesis in all living organisms.

Synthesize

To combine components or elements to form a coherent entity, often used in scientific and industrial contexts.

Scanning Electron Microscope

A type of microscope that uses electrons instead of light to form an image of the sample, providing detailed three-dimensional images at high magnifications.