According to the Globalized AS/AD Model, Expansionary Monetary Policy Shifts

question 125

Multiple Choice

According to the globalized AS/AD model, expansionary monetary policy shifts the AD curve to the right and:

• A)increases goods inflation.
• B)has no effect on goods inflation.
• C)shifts potential output to the right.
• D)shifts potential output to the left.

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Definitions:

Babinski Reflex

A reflex action in infants involving the toes spreading apart when the sole of the foot is stimulated, indicating neurological function.

Calcaneal Reflex

A reflex elicited by striking the Achilles tendon, testing the reflex arc of the sacral segment of the spinal cord.

Dorsiflexion

The action that reduces the angle between the top part of the foot and the shin by pulling the foot upwards towards the shin.

Automatic Responses

Involuntary reactions to stimuli, not requiring conscious thought, such as reflex actions.