Figure 12-2 -Refer to Figure 12-2. If Discretionary Fiscal Policy Is Used

question 102

Multiple Choice

Figure 12-2
-Refer to Figure 12-2. If discretionary fiscal policy is used to eliminate the gap, policy actions Jwill

• A) shift the aggregate demand curve to the left until long-run equilibrium is restored at a price level, P_j and output level, Y_p.
• B) shift the aggregate demand curve and the short-run aggregate supply curve to the left until long-run equilibrium is restored at a price level P_k and output level, Y_p.
• C) shift the aggregate demand curve to the left until long-run equilibrium is restored at a price level, P_r and output level, Y_p.
• D) shift the short-run aggregate supply curve to the left until long-run equilibrium is restored at a price level, P_r and output level, Y_p.

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Definitions:

Oncology Unit

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Low-Sodium Diet

A dietary plan that restricts salt intake, often recommended for individuals with high blood pressure or heart disease to improve health outcomes.