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question 71

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Use the following to answer questions:
Figure: Fiscal Policy I Use the following to answer questions: Figure: Fiscal Policy I   -(Figure: Fiscal Policy I)  Look at the figure Fiscal Policy I. Suppose that this economy is in equilibrium at E<sub>1</sub>. If there is an increase in government purchases,_____ will shift to the _____, causing a(n)  _____ in the price level and a(n)  _____ in real GDP. A) AD<sub>2;</sub> left; increase; decrease B) AD<sub>2;</sub> left; decrease; decrease C) AD<sub>1;</sub> right; increase; increase D) AD<sub>1;</sub> right; decrease; increase
-(Figure: Fiscal Policy I) Look at the figure Fiscal Policy I. Suppose that this economy is in equilibrium at E1. If there is an increase in government purchases,_____ will shift to the _____, causing a(n) _____ in the price level and a(n) _____ in real GDP.


Definitions:

Decentralization

The distribution of decision-making power and responsibility to lower levels within an organization.

Responsibility Accounting Reports

These are financial reports designed to track the financial performance of specific departments or units within an organization, emphasizing accountability and performance evaluation.

Lower-Level Managers

Managers who oversee the day-to-day operations within an organization, usually supervising entry-level employees.

Summary Report

A concise document that presents the main findings or results, often without detailed data.

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