To Eliminate an Inflationary Gap, Policy-Makers May Pursue

question 149

Multiple Choice

To eliminate an inflationary gap, policy-makers may pursue

• A) an expansionary policy that reduces the price level.
• B) a contractionary policy that decreases aggregate demand.
• C) a non-intervention policy that leaves aggregate demand unaffected and increases aggregate supply.
• D) an intervention policy that increases aggregate supply and decreases aggregate demand.

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Definitions:

Deformity

A condition in which part of the body does not have the normal or expected shape, often due to genetic reasons, injury, or disease.

Perform An X-Ray

The process of using X-ray radiation to produce images of the inside of the body to help in diagnosing medical conditions.

Avoid Eye Contact

A precautionary recommendation to prevent direct gaze into another person's eyes, often to avoid transmitting or receiving unwelcome signals.

Yes Or No Answer

A straightforward response indicating affirmation or negation without elaboration.