Use the Following to Answer Questions

question 14

Multiple Choice

Use the following to answer questions:
-(Figure: Inflationary and Recessionary Gaps) Refer to Figure: Inflationary and Recessionary Gaps. A movement from AD₃ to AD₁ could be caused by:

• A) increased government purchases.
• B) increased government transfers.
• C) higher tax rates.
• D) lower tax rates.

---

Definitions:

Bill of Rights

A formal declaration of the fundamental rights and freedoms that are protected and guaranteed by a government to its citizens.

Absolute Rights

Absolute rights refer to legal rights that are fundamental, inalienable, and not subject to limitations or conditions under any circumstance.

Police Powers

Powers possessed by states as part of their inherent sovereignty. These powers may be exercised to protect or promote the public order, health, safety, morals, and general welfare.

Conflict

A disagreement or argument where there is a clash of interests, values, actions, or directions.