Figure 27-6 -Refer to Figure 27-6. in the Dynamic Model of AD-AS

question 25

Multiple Choice

Figure 27-6
-Refer to Figure 27-6. In the dynamic model of AD-AS in the figure above, if the economy is at point A in year 1 and is expected to go to point B in year 2, Congress and the president would most likely pursue

• A) expansionary fiscal policy.
• B) contractionary fiscal policy.
• C) expansionary monetary policy.
• D) contractionary monetary policy.
• E) expansionary automatic stabilizers.

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Definitions:

First Session

The initial meeting or encounter in a series, often used to set expectations, build rapport, or lay out the groundwork.

Decision Making

The process of identifying and choosing alternatives based on the values, preferences, and beliefs of the decision-maker.

Consumers

Individuals or groups who purchase goods and services for personal use.

Employees

Individuals who work for a company or another person and receive compensation for their labor or services.