Use the Figure Below to Answer the Following Question(s)

question 76

Multiple Choice

Use the figure below to answer the following question(s) . Figure 11-2
Refer to Figure 11-2. If an economy operates in the short run at point a, Keynesian analysis indicates that restrictive fiscal policy will

• A) increase AD and move the economy toward point c.
• B) decrease AD and move the economy toward point b.
• C) increase SRAS and move the economy toward point b.
• D) decrease SRAS and move the economy toward point c.

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Definitions:

Publicity

The public visibility or awareness for any product, service, or company, often gained through media or promotional activities not paid for directly.

Encoding

The process of having the sender transform an idea into a set of symbols during the communication process.

Decoding

The process of having the receiver take a set of symbols, the message, and transform them back to an idea during the communication process.

Communication Channel

The medium through which a message is transmitted from the sender to the receiver, such as email, telephone, or social media.