Use the following to answer questions:
Figure: Policy Alternatives 
-(Figure: Policy Alternatives) Refer to Figure: Policy Alternatives. If the economy is in equilibrium at Y1 in panel (a) , it is in:
Definitions:
Process
A series of actions or steps taken in order to achieve a particular end.
Private Owner
An individual or entity that exclusively owns the rights to a property, business, or asset, without governmental sharing or interference.
Prohibited
Forbidden by law, rules, or other forms of authority.
Infringes
The act of violating, breaching, or encroaching upon laws, regulations, contracts, or the rights of others.
Q7: (Figure: Fiscal Policy Choices) Refer to Figure:
Q26: Which asset is part of M1?<br>A) long-term
Q29: Bank reserves are:<br>A) the money in bank
Q51: (Figure: Policy Alternatives) Refer to Figure: Policy
Q65: Income-expenditure equilibrium occurs when:<br>A) real GDP equals
Q98: Financial markets eliminate transactions costs.
Q117: The LARGEST monetary aggregate is:<br>A) M1, because
Q127: If all retail stores announce unexpectedly high
Q258: A recessionary gap occurs when:<br>A) potential output
Q355: When households invest their wealth in financial