Use the Following to Answer Questions

question 266

Multiple Choice

Use the following to answer questions:
Figure: Policy Alternatives
-(Figure: Policy Alternatives) Refer to Figure: Policy Alternatives. Assume that the economy depicted in panel (a) is in short-run equilibrium at a real GDP level of Y₁. The economy will correct itself:

• A) rapidly, without use of fiscal policy.
• B) in the long run as wages fall.
• C) in the short run as wages rise.
• D) because the aggregate demand curve shifts.

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Definitions:

Antagonist

An antagonist is a substance that inhibits or blocks the activity of a neurotransmitter or hormone at receptor sites in the brain.

Myasthenia Gravis

Myasthenia Gravis is an autoimmune disorder characterized by muscular weakness and fatigue, as the immune system mistakenly attacks the body's own neuromuscular junctions.

Acetylcholine Agonist

A substance that mimics the action of acetylcholine, a neurotransmitter involved in muscle activation and memory, by binding to acetylcholine receptors.

Physostigmine

A naturally occurring cholinesterase inhibitor used in the treatment of myasthenia gravis and as an antidote to anticholinergic poisoning.