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question 102

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Use the following to answer questions: Use the following to answer questions:   -(Figure: Short-Run Equilibrium)  Refer to Figure: Short-Run Equilibrium. If the economy is at equilibrium at Y<sub>1</sub> and P<sub>1</sub>, 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
-(Figure: Short-Run Equilibrium) Refer to Figure: Short-Run Equilibrium. If the economy is at equilibrium at Y1 and P1, the government should use _____ fiscal policy to shift the aggregate demand curve to the _____.


Definitions:

Habituation

A learning process where an organism reduces its responsiveness to a non-threatening stimulus over time through repeated encounters.

Stimuli

External or internal events that elicit a response from an organism.

Salivary Response

An automatic reaction of the salivary glands producing saliva, often triggered by the sight, smell, or thought of food, demonstrating a classic conditioned response.

Big Mac

A hamburger sold by the international fast-food chain McDonald's, characterized by its two-part sesame seed bun and special sauce.

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