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

---

Definitions:

Agreeableness

A personality trait that reflects a person's tendency to be compassionate, cooperative, and friendly.

Eating Disorder

Psychological disorders characterized by abnormal or disturbed eating habits, such as anorexia nervosa, bulimia nervosa, and binge-eating disorder.

Resilient/High-Functioning

Characterizes individuals who effectively manage stress and bounce back from challenges while maintaining high levels of performance.

Undercontrolled/Emotionally Dysregulated

A description of individuals who have difficulties in managing their emotions, leading to impulsive actions and problems in emotional self-regulation.