Figure 22-2 Use the Pair of Diagrams Below to Answer the Following

question 342

Multiple Choice

Figure 22-2
Use the pair of diagrams below to answer the following questions.
-Refer to Figure 22-2. If the economy starts at C and 1, then in the short run, a decrease in taxes moves the economy to

• A)D and 2.
• B)D and 3.
• C)back to C and 1.
• D)None of the above is correct.

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Definitions:

Equitable Remedy

A judicial order enforcing a right or redressing a wrong, granted when monetary damages are not sufficient as relief.

Specific Performance

A legal remedy where the court orders the breaching party to fulfill the exact terms of a contract, rather than paying damages.

Injunction

A judicial order compelling a party to do or refrain from doing specified acts, used as a remedy in many types of disputes.

Drastic Change

Drastic change refers to a significant and often sudden alteration in circumstances, conditions, or the state of something.