Figure 12-1 -Refer to Figure 12-1. If Discretionary Fiscal Policy Is Used

question 12

Multiple Choice

Figure 12-1
-Refer to Figure 12-1. If discretionary fiscal policy is used to eliminate the gap, policy actions Jwill

• A) shift the aggregate demand curve to the right until long-run equilibrium is restored at a price level, P₁ and output level, Y_p.
• B) shift the short-run aggregate supply curve to the right until long-run equilibrium is restored at a price level, P₁ and output level, Y_p.
• C) shift the aggregate demand curve to the right until long-run equilibrium is restored at a price level, P₂ and output level, Y_p.
• D) shift the aggregate demand curve and the short-run aggregate supply curve to the right until long-run equilibrium is restored at a price level corresponding to point d and output level, Y_p.

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Definitions:

Ideoscapes

Coined by Arjun Appadurai, referring to the global flow of ideas, ideologies, and images that shape political and ideological movements.

Arjun Appadurai

A contemporary social theorist particularly known for his work on globalization, focusing on the cultural dynamics of global economic and political changes.

Political Information

Information related to government policies, political ideologies, elections, political movements, and leaders.

Global Capitalist Class

The global capitalist class refers to a social group comprised of individuals and entities at the top of the capitalist system who hold significant economic power and influence across the world.