Figure 17-1 -Refer to Figure 17-1. Suppose the U.S. Economy Is at Economy

question 81

Multiple Choice

Figure 17-1
-Refer to Figure 17-1. Suppose the U.S. economy is at point j. With the onset of World War II, expansionary fiscal policies forced by the war pushed into an inflationary gap. Which of the following best illustrates this event?

• A) expansionary fiscal policies shifted the aggregate demand curve, creating an inflationary gap equal to (Y_n - Y_P).
• B) expansionary fiscal policies shifted the aggregate demand curve, creating an inflationary gap equal to (Y_m - Y_P).
• C) expansionary fiscal policies shifted the aggregate demand curve, creating an inflationary gap equal to (Y_m - Y_j).
• D) expansionary fiscal policies shifted the aggregate demand curve, creating an inflationary gap equal to (Y_n - Y_j).

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Definitions:

Blood Pressure

The pressure of circulating blood on the walls of blood vessels, essential for the circulatory system's functioning.

Appetite

The natural desire to satisfy bodily needs, especially for food.

Self-confidence

The belief in one's own abilities and judgment, which fosters a sense of trust and confidence in oneself across various situations.

Stimulants

Substances that increase the activity of the nervous system, resulting in increased alertness, attention, and energy.