FIGURE 24-1 -Refer to Figure 24-1. If the Economy Is Currently Producing

question 55

Multiple Choice

FIGURE 24-1
-Refer to Figure 24-1. If the economy is currently producing output of Y0 and the government initiates an expansionary fiscal policy adequate to close the output gap, the result is intended to be

• A) the vertical line at Y* will shift to the left, intersecting the AS and AD curves at Y0.
• B) no change in either price level or output, since expansionary fiscal policy is ineffective.
• C) that the AS curve will shift to the right until point A is reached.
• D) that the AS curve and the AD curve will shift left simultaneously.
• E) that the AD curve will shift to the right until point B is reached.

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Definitions:

Bulbourethral Glands

Glands that lie beneath the prostate and empty their fluid into the urethra. Their fluid aids in sperm movement.

Glans Penis

A cone-shaped structure at the end of the penis.

Bulbourethral Gland

A gland in males that secretes a fluid into the urethra to lubricate the urethra and neutralize acids during sexual arousal.

Prostate Gland

A small, walnut-shaped gland in men that produces seminal fluid, which nourishes and transports sperm.