Use the Following to Answer Questions

question 39

Multiple Choice

Use the following to answer questions:
-(Figure: Fiscal Policy I) Refer to Figure: Fiscal Policy I. Suppose that this economy is in equilibrium at E₂. If there is an increase in taxes_____ will shift to the _____, causing a(n) _____ in the price level and a(n) _____ in real GDP.

• A) AD_2; left; increase; decrease
• B) AD_2; left; decrease; decrease
• C) AD_1; right; increase; increase
• D) AD_1; right; decrease; increase

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Definitions:

Fatty Acids And Glycerol

Building blocks of fats in organisms; fatty acids are long hydrocarbon chains, while glycerol is a three-carbon molecule that binds fatty acids to form triglycerides.

Amino Acids

Organic compounds that serve as the building blocks of proteins, necessary for various bodily functions.

Monosaccharides

Simple sugars that are the most basic form of carbohydrates, consisting of one sugar molecule and serving as the building blocks for more complex sugars.

Polysaccharides

Complex carbohydrates composed of long chains of monosaccharide units bound together by glycosidic linkages, serving roles in energy storage and structural support.