The Diagram Below Shows an AD/AS Model for a Hypothetical

question 36

Multiple Choice

The diagram below shows an AD/AS model for a hypothetical economy which is initially in a short-run equilibrium at point A. FIGURE 24-6
-Refer to Figure 24-6.The government could close the existing output gap by

• A)increasing the net tax rate.
• B)decreasing the net tax rate.
• C)decreasing government purchases.
• D)decreasing government transfer payments.
• E)implementing a contractionary fiscal policy.

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Definitions:

Suppliers

Entities that provide goods or services to another company or organization, often as part of a supply chain.

Human Resources

The department within an organization that handles recruitment, training, employee relations, and benefits.

Financial Resources

Assets in the form of money or other valuables that an individual or organization can draw upon to achieve their goals or objectives.

Stakeholder Elements

The different components or aspects that define stakeholders, including their interests, rights, ownership, and influence on an organization.