Use the Following to Answer Questions

question 154

Multiple Choice

Use the following to answer questions:
Figure: Short- and Long-Run Equilibrium II
-(Figure: Short- and Long-Run Equilibrium II) Look at the figure Short- and Long-Run Equilibrium II. Which of the following would be the appropriate response on the part of the government upon viewing the state of the economy?

• A)Increase government spending to close the recessionary gap.
• B)Decrease government spending to close the recessionary gap.
• C)Lower tax rates to close the inflationary gap.
• D)Raise tax rates to close the inflationary gap.

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Definitions:

IWork

A suite of productivity software created by Apple, including Pages, Numbers, and Keynote for document creation, spreadsheets, and presentations respectively.

Apple Computers

An American technology company known for designing and manufacturing consumer electronics, computer software, and online services.

System Software

The software designed to provide a platform for other software. Examples include operating systems, computational science software, game engines, industrial automation, and software as a service applications.