FIGURE 24-2 -Refer to Figure 24-2. Suppose the Economy Is in a in a Short-Run

question 46

Multiple Choice

FIGURE 24-2
-Refer to Figure 24-2. Suppose the economy is in a short-run equilibrium at Y1. A contractionary fiscal policy would restore the economy to potential output Y*) by shifting the

• A) AS curve to the left to intersect AD at C.
• B) AS curve to the right.
• C) potential GDP and the AS curve to the left.
• D) AD curve to the right.
• E) AD to the left to intersect AS at point A.

---

Definitions:

Genetically Predisposed

A term referring to the likelihood of inheriting specific traits, behaviors, or conditions based on one's genetic makeup.

Modern Science

The systematic study of the natural and physical world through observation, experimentation, and reasoning, particularly emphasizing empirical evidence and the scientific method.

Symbolic Ethnicity

An ethnic identity that is relevant only on specific occasions and does not significantly affect everyday life.

Fourth-generation

In the context of technology, refers to the fourth iteration or version of a product or system, often highlighting significant advancements or changes from previous versions.