Refer to Figure 18.3 for the Following Question

question 68

Multiple Choice

Refer to Figure 18.3 for the following question.
Figure 18.3
-Refer to Figure 18.3.Given that the economy has moved from A to B in the graph above,which of the following would be the appropriate fiscal policy to achieve potential GDP?

• A) Increase interest rates
• B) Increase government spending
• C) Decrease interest rates
• D) Increase taxes

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Definitions:

Agglutination

The clumping together of cells or particles, commonly observed in blood cells in response to certain antibodies, which can be a basis for blood typing.

Factor XIII

A plasma enzyme that plays a key role in blood coagulation through its action in stabilizing the formation of a blood clot.

Prothrombin

Glycoprotein present in blood that, in the presence of prothrombin activator, is converted to thrombin.

Fibrin-stabilizing Factor

An enzyme that crosslinks fibrin clots, stabilizing them in the process of coagulation.