Fiscal and Monetary Policies Typically Affect the Short- Run Level

question 49

Multiple Choice

Fiscal and monetary policies typically affect the short- run level of GDP because they cause shifts in the but they will not generally have any long- run effects on real GDP unless they affect .

• A)AD curve; the level of potential output
• B)AS curve; factor- utilization rates
• C)AS curve; factor supplies or factor productivity
• D)AD curve; factor- utilization rates
• E)AD curve; the unemployment rate

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Definitions:

Supination

The rotational movement of the forearm or foot that results in the palm or sole facing upwards or forwards.

Pronation

The rotation of the hand or forearm so that the palm faces downwards or backwards, or the inward roll of the foot during normal motion.

Depression

A mental health disorder characterized by persistently depressed mood or loss of interest in activities, causing significant impairment in daily life.

Elevation

Movement of a structure in a superior direction.