Use the Following to Answer Questions

question 61

Multiple Choice

Use the following to answer questions:
-(Figure: Fiscal Policy Choices) Refer to Figure: Fiscal Policy Choices. It would be appropriate to use contractionary fiscal policy to shift aggregate demand in _____ from _____.

• A) panel (b); AD₁ to AD₂
• B) panel (a); AD₂ to AD₁
• C) panel (a); AD₁ to AD₂
• D) panel (b); AD₂ to AD₁

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Definitions:

Track Record

The history of performance, achievements, or the reliability of an individual, organization, or product over a period of time.

Contract Expires

The moment when a formal agreement, particularly relating to employment or services, reaches its end date and is no longer in effect unless renewed.

Secondary Boycott

A form of protest in which a union refuses to work for, or urges others to boycott, companies that do business with an employer it is in dispute with.

Taft-Hartley Act

A 1947 US federal law that restricted the activities and power of labor unions, including prohibiting certain types of strikes and requiring union leaders to swear anti-communist oaths.