Consider the Basic AD/AS Model, and Suppose There Is a Negative

question 42

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 leftward unexpectedly, the fiscal policy may be , and real GDP may _ _ potential GDP.

• A)appropriate; equal
• B)too strong; rise above
• C)too weak; stay below
• D)too weak; rise above
• E)too strong; stay below

---

Definitions:

Mechanistic Pathways

The specific sequences of steps or reactions that lead to a chemical reaction or transformation.

E Isomer

Refers to the geometric configuration of molecules where substituents are on opposite sides of a double bond or around a ring structure.

E2 Mechanism

The E2 mechanism is a bimolecular eliminative reaction in organic chemistry where a hydrogen atom is removed from a β-carbon as a leaving group departs, forming a double bond.

Stereochemistry

The branch of chemistry concerned with the spatial arrangement of atoms in molecules and the impact of this arrangement on chemical reactions and properties.