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:

Exploratory Voyages

Journeys undertaken by navigators and explorers to discover unknown territories and maritime routes.

Jerusalem

A city in the Middle East, significant to Judaism, Christianity, and Islam, known for its rich historical and religious heritage.

Conquistadors

Spanish explorers and soldiers who participated in the conquest of the Americas in the 16th century, often characterized by their pursuit of gold, conversion of indigenous peoples to Christianity, and establishment of Spanish colonies.

Encomienda

A labor system instituted by the Spanish crown during the colonial period in Latin America, allowing colonists to demand tribute and forced labor from the indigenous inhabitants.