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

question 95

Multiple Choice

Use the figure below to answer the following question(s) . Figure 12-2
Refer to Figure 12-2. If an economy is operating in the short run at point a, Keynesian analysis indicates that expansionary fiscal policy will

• A) increase AD and move the economy toward point b.
• B) increase AD and move the economy toward point c.
• 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:

Consumer Reactions

The responses or behaviors of consumers towards products, services, or marketing strategies.

Ground Beef

Meat that has been finely chopped by a meat grinder or a chopping knife, typically made from beef, but can be from other meats.

Framing

The way an issue is posed; how an issue is worded can significantly affect decisions and judgments.

Winter Coat

A piece of outerwear designed to keep the body warm during cold weather conditions.