Exhibit 15-4 Aggregate Demand and Supply Model

question 43

Multiple Choice

Exhibit 15-4 Aggregate demand and supply model

-Suppose the economy in Exhibit 15-4 is in equilibrium at point E₁ and the marginal propensity to consume (MPC) is 0.75.Following Keynesian economics,the federal government can move the economy to point E₂ and reduce inflation by:

• A) decreasing government tax revenue by $100 billion.
• B) decreasing government tax revenue by $750 billion.
• C) increasing government tax revenue by $100 billion.
• D) increasing government tax revenue by approximately $33 billion.
• E) decreasing government tax revenue by approximately $33 billion.

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Space Registry

A catalog or database that tracks objects and activities in outer space, such as satellites and space debris.

National Appropriation

The act of a government allocating funds to various departments, projects, or regions within the country.

Forum-Selection Clause

A provision in a contract designating the court, jurisdiction, or tribunal that will decide any disputes arising under the contract.

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