Exhibit 12-2 -Which of the Following Sets of Policies Would Unquestionably Move

question 41

Multiple Choice

Exhibit 12-2
-Which of the following sets of policies would unquestionably move the economy illustrated in Exhibit 12-2 to full employment?

• A) increase in government purchases,increase in taxes,and decrease in transfer payments
• B) decrease in government purchases,increase in taxes,and decrease in transfer payments
• C) increase in government purchases,decrease in taxes,and increase in transfer payments
• D) increase in government purchases,increase in taxes,and increase in transfer payments
• E) decrease in government purchases,decrease in taxes,and decrease in transfer payments

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Definitions:

Developing Nations

Countries with a lower level of industrialization, a lower standard of living, and lower Human Development Index scores compared to developed countries.

Governments

The organizations or systems that govern a nation, state, city, or community, overseeing regulation, policy, and the administration of societal functions.

Wide-Scale Change

Significant modifications or transformations affecting large areas, systems, or populations.

Social Innovation

The development and implementation of novel solutions to social problems that aim to enhance society's capacity to act.