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

---

Definitions:

Spiritual Workplace

A Spiritual Workplace is an environment that recognizes and incorporates individuals' spiritual values and practices in its culture, enhancing overall well-being and meaningful work.

Connection

A relationship or bond between individuals or entities that facilitates communication, interaction, or cooperation.

Psychological Capital

A positive psychological state characterized by aspects like self-efficacy, optimism, resilience, and hope, which contributes to an individual’s performance and well-being.

Self-Efficacy

Refers to an individual's belief in their ability to complete tasks or achieve goals.