Consider the Basic AD/AS Model,and Suppose There Is a Negative

question 138

Multiple Choice

Consider the basic AD/AS model,and suppose there is a negative output gap.If an expansionary fiscal policy is pursued and the AS curve shifts leftward unexpectedly,the fiscal policy may be ________,and real GDP may ________ potential GDP.

• A)too weak; stay below
• B)too weak; rise above
• C)too strong; stay below
• D)too strong; rise above
• E)appropriate; equal

---

Definitions:

Somatoform Disorders

A group of psychological disorders in which patients experience physical symptoms that are incongruent with or can't be fully explained by any underlying medical or neurological condition.

Psychotic Disorders

A group of mental health conditions that affect the mind, causing impaired thought and emotions, which lead to a detachment from reality.

Mood Disorders

A category of mental health issues that primarily affect a person's emotional state, including depression and bipolar disorder.

Conversion Disorders

A type of disorder where patients suffer from neurological symptoms, such as numbness, blindness, or paralysis, without a detectable physical cause, often linked to psychological factors.