Use the Following to Answer Questions

question 81

Multiple Choice

Use the following to answer questions:
-(Figure: Short- and Long-Run Equilibrium) Refer to Figure: Short- and Long-Run Equilibrium. If the economy is at equilibrium at E₁, the government should use _____ fiscal policy to shift the aggregate demand curve to the _____.

• A) expansionary; right
• B) expansionary; left
• C) contractionary; right
• D) contractionary; left

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Definitions:

Blood Vessels

Tubular structures in the body responsible for transporting blood to and from the heart and throughout the body, including arteries, veins, and capillaries.

Striated Involuntary

Relating to muscle tissue that is marked by a pattern of stripes or striations and is not under conscious control, such as the heart muscle.

Axons

Long, slender projections of nerve cells (neurons) that transmit electrical impulses away from the neuron's cell body.

Action Potentials

Rapid changes in the electrical charge of a neuron's membrane, facilitating the transmission of nerve impulses.