Given AD₁ and AS₁ in Figure 8

question 40

Multiple Choice

Given AD₁ and AS₁ in Figure 8.3,the classical approach to achieving full employment at an output of $300 billion would be to

• A)Increase taxes and increase government spending to shift AD₁ to AD₂.
• B)Increase the growth of the money supply to shift AD₁ to AD₂.
• C)Do nothing and wait for "natural" market forces to achieve full employment.
• D)Use all available supply-side options.

---

Definitions:

Quantity Demanded

The total amount of a product that consumers are willing and able to purchase at a certain price level within a specified time period.

Streaming Movies

The process of watching films over the internet without the need for downloading, typically through subscription-based platforms.

Lawnmowers

Machines utilizing one or more revolving blades to cut a grass surface to an even height.

Gasoline

A liquid fuel derived from petroleum, primarily used as a fuel in internal combustion engines.