Figure 35-2 Use the Pair of Diagrams Below to Answer the Following

question 85

Multiple Choice

Figure 35-2
Use the pair of diagrams below to answer the following questions.
-Refer to Figure 35-2.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:

Percentage

A portion or division of a whole expressed as a number out of 100.

Development

Development refers to the process of economic growth, structural change, and improvement in the living standards and quality of life of a population.

Basic and Applied Research

Fundamental scientific exploration aimed at gaining knowledge and understanding, and its practical application to solve specific problems, respectively.

Percentage

A proportion or share in relation to a whole, expressed as a fraction of 100.