​ ​ Exhibit 16A-2 Macro AD/AS Models

question 85

Multiple Choice

​ ​ Exhibit 16A-2 Macro AD/AS Models
​

​ In Panel (a) of Exhibit 16A-2, an expansionary Keynesian government stabilization policy designed to move the economy from Y₁ to Y_p would shift the:

• A) ​aggregate demand curve (A
• D)to the left.
• B) ​aggregate demand curve (A
• D) to the right.
• C) ​SRAS rightward.
• D) ​LRAS rightward.

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Definitions:

Frustration Of Purpose

A defense in contract law that may excuse parties from their obligations if an unforeseen event undermines the contract's original purpose.

Condition Precedent

A condition or event that must occur before a contract or a specific provision within a contract becomes effective or enforceable.

Illusory Promise

A statement or promise that is misleading or lacks the necessary intent to be legally enforceable.

Statutes Of Limitations

Laws that set the maximum time after an event within which legal proceedings may be initiated.