Based on the Situation Depicted in the Graph Below, Which

question 28

Multiple Choice

Based on the situation depicted in the graph below, which of the following would be an appropriate fiscal policy response?

• A)increase taxes
• B)decrease taxes
• C)decrease government purchases
• D)all of the above
• E)both A and C above

---

Definitions:

Dishonest Employees

Workers who engage in fraudulent or unethical behavior, potentially harming their employer financially or reputationally.

Fraudulent Activity

An illegal act involving the intentional deception or misrepresentation that an individual or entity makes to gain a benefit or advantage.

Debit Memorandum

A document or entry recorded by an entity that decreases a balance in another's account, typically used in adjustments between businesses.

Cash Balance

The amount of cash a company has on hand at a given time, reflecting its liquidity.