If There Is an Inflationary Gap in the Economy, Discretionary

question 38

Multiple Choice

If there is an inflationary gap in the economy, discretionary fiscal policy will likely include action to:

• A) shift aggregate demand to the right.
• B) prevent the aggregate demand curve from shifting.
• C) shift aggregate demand to the left.
• D) shift both aggregate demand and short-run aggregate supply to the left.

---

Definitions:

100,000

A numerical figure commonly used as a statistical baseline to calculate rates per population for comparison or analysis.

Suicide Attempt

An act with the intention to end one's life that does not result in death.

Gone Awry

A phrase used to describe something that has gone wrong or deviated from the intended or expected course.

Crisis Counselors

Professionals trained to offer support and guidance to individuals undergoing acute psychological distress or experiencing a traumatic event.