Figure 14-5 -Refer to Figure 14-5. to Eliminate the Output Gap, Policy

question 19

Multiple Choice

Figure 14-5
-Refer to Figure 14-5. To eliminate the output gap, policy makers could conduct

• A) an open market sale to raise interest rates and reduce investment spending which will shift the aggregate demand curve to the left.
• B) an open market sale to lower interest rates and stimulate investment spending which will shift the short-run aggregate supply curve to the right.
• C) an open market purchase to raise interest rates and reduce investment spending which will shift the aggregate demand curve to the left.
• D) an open market purchase to lower interest rates and stimulate investment spending which will shift the short-run aggregate supply curve to the left.

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Definitions:

Actionable Per Se

This term refers to certain acts or statements that are considered inherently harmful and can lead to a lawsuit without the need to prove actual damage or injury.

Assault And Battery

Legal terms where assault refers to the threat of bodily harm that reasonably causes fear of harm in the victim, and battery refers to the actual physical impact on another person.

Consent

Voluntary agreement to or permission for something proposed by another.

Tort Of Nuisance

A legal action for causing substantial and unreasonable interference with an individual's use or enjoyment of their property.