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

question 116

Multiple Choice

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

• 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:

Subjective

Subjective pertains to personal opinions, interpretations, or feelings, rather than facts that can be universally observed or verified.

Reliability and Validity

The consistency and accuracy of a measurement or test, respectively.

Critical-Incident Technique

A method used in qualitative research and management to identify significant events or actions that contributed to a particular outcome, focusing on specific examples and experiences.

Running Log

A record or journal maintained by runners to track their training, including distances run, times, and any other relevant details.