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

question 108

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 right 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

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Definitions:

Sudden Infant Death Syndrome

The unexplained death of a seemingly healthy baby less than a year old during sleep, without a clear cause even after a thorough investigation.

Lamaze Method

A childbirth method in which women are educated about childbirth, breathe in patterns that lessen pain during birth, and have a coach present.

Apgar Scale

A measure of a newborn’s health that assesses appearance, pulse, grimace, activity level, and respiratory effort.

Prostaglandins

Hormones that stimulate uterine contractions.