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:

Hornworts

A group of non-vascular plants belonging to the phylum Anthocerotophyta, characterized by a horn-like structure bearing reproductive organs.

Liverworts

A group of non-vascular plants in the division Marchantiophyta, known for their liver-shaped gametophytes.

Mosses

Small, non-vascular plants that typically form dense green clumps or mats, often found in moist or shady locations.

Gametophyte

The haploid stage in the life cycle of plants and algae that produces gametes through mitosis, leading to sexual reproduction.