Exhibit 12-4 -Which of the Following Sets of Policies Would Unquestionably Move

question 224

Multiple Choice

Exhibit 12-4
-Which of the following sets of policies would unquestionably move the economy illustrated in Exhibit 12-4 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:

Benevolence

The quality of being well-meaning; kindness and generosity towards others.

Integrity

The quality of being honest and having strong moral principles, or the state of being whole and undivided.

I-P-O Model

Input-Process-Output Model, a framework used to understand how teams or systems transform inputs into outputs.

Sequential

Pertaining to or forming a sequence; arranged in or following a logical or chronological order.