Refer to the Graphs Above

question 134

Multiple Choice

Refer to the graphs above. Assume that the economy is initially at equilibrium where AD₂ and AS intersect in Graph 1, and also assume that the economy is initially at point C in Graph 2. If the government implements contractionary or restrictive policy, it would make the economy in graph 2 to:

• A) Move from point C to point B
• B) Move from point C to point A
• C) Move from point C to point D
• D) Remain at point C

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Definitions:

CCA Rate

Capital Cost Allowance rate, used for tax purposes to determine the yearly depreciation of tangible property.

Maintenance

The process of preserving or keeping equipment, systems, or facilities in effective operating condition through routine checks and repairs.

Range Cylinder

Refers to a component in hydraulic or pneumatic systems that determines the range of movement or force exerted by the system, often by specifying the maximum extendable length of the cylinder.

Yoke Bar

A component in mechanical systems used to connect two moving parts, such as in the suspension or driveshaft of a vehicle.