Exhibit 16A-1 Policy Alternatives in Panel (B)of Exhibit 16A-1

question 36

Multiple Choice

Exhibit 16A-1 Policy Alternatives In Panel (b) of Exhibit 16A-1, the economy is initially in short-run equilibrium at real GDP level Y₁ and price level P₂. If the federal government decides to intervene, it would most likely:

• A)increase taxes.
• B)decrease the money supply.
• C)increase the level of government spending for goods and services.
• D)decrease the level of government spending for goods and services.

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Definitions:

Personal Threatening

Situations or stimuli that are perceived as threats to one's personal safety or well-being.

Cognitive-behavioral Therapy

An approach to mental therapy that aims to increase happiness and resolve difficulties by transforming negative thoughts, emotions, and behaviors.

Depressed Clients

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Pleasant Activities

Engagements or tasks that bring joy, satisfaction, or pleasure to an individual.