Exhibit 15-2 -Refer to the Graph in the Exhibit.According to Policymakers Who

question 88

Multiple Choice

Exhibit 15-2

-Refer to the graph in the exhibit.According to policymakers who favour an active approach to policy, how can the economy attain equilibrium at potential output?  

• A) by shifting the SRAS curve shift to the left
• B) by shifting the SRAS curve shift to the right
• C) by increasing the money supply or by increasing government spending
• D) by decreasing aggregate demand

---

Definitions:

Itemized Deductions

Specific expenses that taxpayers can claim to reduce their taxable income, as opposed to taking the standard deduction.

Charitable Contributions

Donations or gifts given by individuals or organizations to non-profit organizations, which can often be deducted from taxes.

AGI Limitation

Restrictions or phase-outs on certain tax deductions, credits, or exemptions based on the taxpayer's Adjusted Gross Income (AGI).

Churches

Religious organizations that may enjoy certain tax exemptions and benefits under IRS guidelines.