-Refer to the Above Figure

question 130

Multiple Choice

-Refer to the above figure. Suppose the relevant aggregate demand curve is . If the government wants to use fiscal policy to close the existing gap, it should

• A) increase taxes.
• B) decrease taxes.
• C) increase the money supply.
• D) increase government spending.

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Definitions:

Implied Warranty

A legal assumption that the goods sold are fit for their intended purpose, even if not explicitly promised by the seller.

Express Warranty

A written or verbal promise made by a seller to a buyer, guaranteeing the quality or functionality of a product or service.

Merchantability

A guarantee that a product will meet reasonable expectations of quality and usability for which it was sold.

Nonconforming Goods

Goods shipped that do not meet the specifications or requirements set out in the contract of sale.