Use the Following to Answer Questions

question 228

Multiple Choice

Use the following to answer questions:
Figure: Fiscal Policy Options
-(Figure: Fiscal Policy Options) Look at the figure Fiscal Policy Options. If the aggregate demand curve is AD, the most appropriate discretionary fiscal policy is to _____ government spending and _____ income tax rates.

• A)decrease; increase
• B)decrease; maintain
• C)increase; increase
• D)increase; maintain

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Definitions:

Evolutionary Theories

Theories that explain the process of natural selection and how it leads to the evolution of species over time.

Primary Reaction

The immediate response or reflex triggered by a specific stimulus in an organism.

Dangerous Situation

A scenario that poses a risk of harm or injury to individuals or property.

Theoretical Diversity

The existence and application of multiple theories within a field of study to understand and explain phenomena.