(Figure: Aggregate Expenditures)The Figure Shows the Aggregate Expenditures Line for an Economy.Which

question 19

Multiple Choice

(Figure: Aggregate Expenditures) The figure shows the aggregate expenditures line for an economy.Which is the proper sequence of events if income was originally at $100?

• A) Total spending exceeds income;firms reduce production;workers are laid off;and incomes fall until equilibrium is reached.
• B) Total income exceeds spending;firms expand production;workers are hired;and incomes rise until equilibrium is reached.
• C) Total spending exceeds income;firms expand production;workers are hired;and incomes rise until equilibrium is reached.
• D) Total income exceeds spending;firms reduce production;workers are laid off;and incomes fall until equilibrium is reached.

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Definitions:

Moral Principles

Fundamental beliefs about what is right and wrong that guide ethical decision-making and behavior.

Rawls's Model

A theoretical framework proposed by philosopher John Rawls that emphasizes principles of justice as fairness, including the veil of ignorance and the difference principle.

Impartial

Not biased, fair; treating or affecting all equally.

Morality of Authority

The concept that moral correctness stems from the authority of the setting, institution, or individual making the judgment.