Refer to Figure 13.4 for the Following Questions

question 8

Multiple Choice

Refer to Figure 13.4 for the following questions.
Figure 13.4

-Given that the economy has moved from A to B in Figure 13.4, which of the following would be the appropriate fiscal policy to achieve potential GDP?

• A)decrease taxes
• B)decrease government spending
• C)expansionary fiscal policy
• D)increase interest rates

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Definitions:

Articles of Organization

Legal documents filed with a state government to legally document the creation of a limited liability company (LLC).

Register

To record or enroll formal or official information in an official list or database for the purpose of identification, control, or evidence.

Business Operation

The day-to-day activities involved in running a business, including production, marketing, and managing finances.

Terminated

Refers to the action of ending or concluding something, such as employment, contracts, or legal obligations.