The Figure Below Shows the Price Level, Real GDP, and the Potential

question 107

Multiple Choice

The figure below shows the price level, real GDP, and the potential output for an economy. According to those who favor an active approach to policy, the economy can attain equilibrium at potential output if:

• A) the SRAS curve shifts to the left.
• B) the SRAS curve shifts to the right.
• C) money supply is increased.
• D) government spending is decreased.
• E) aggregate demand increases.

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Definitions:

Parenteral Nutrition

A method of feeding that bypasses the gastrointestinal tract, delivering nutrients directly into the bloodstream through intravenous infusion to meet nutritional needs.

Bloodstream Infection

An infection that occurs when bacteria or viruses enter the blood, leading to potentially serious conditions.

Pneumothorax

The presence of air or gas in the pleural space that causes the lung to collapse, potentially leading to respiratory distress.

Liver Disease

A broad term that encompasses a range of conditions affecting liver function, including hepatitis, cirrhosis, and liver cancer.