Use the Following to Answer Questions

question 61

Multiple Choice

Use the following to answer questions:
Figure: AD-AS Model I
-(Figure: AD-AS Model I) Refer to Figure: AD-AS Model I. If the economy is at point X, the appropriate fiscal policy is to:

• A) increase taxes and decrease government spending.
• B) decrease taxes and increase government spending.
• C) increase the money supply and interest rates.
• D) decrease the money supply and interest rates.

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Definitions:

United States

A country in North America consisting of 50 states, a federal district, five major self-governing territories, and various possessions, known for its democratic government and diverse population.

Twenty-Fourth Amendment

An amendment to the U.S. Constitution, ratified in 1964, prohibiting the imposition of poll taxes in federal elections, facilitating broader voter participation.

Poll Taxes

A tax levied as a fixed sum on every liable individual, historically used to disenfranchise voters, particularly African Americans in the United States, before being declared unconstitutional.

Ratified

The formal approval or adoption of an agreement, treaty, or constitutional amendment, typically requiring a specified majority vote.