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

question 49

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:

Summer Season

The warmest season of the year, typically occurring between spring and autumn in temperate regions, and often associated with outdoor activities and vacations.

Push Strategy

A marketing strategy where businesses push their products to be seen by consumers, typically through distribution channels, to increase demand.

Economies of Scale

The cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.

Cost Reduction

Strategic efforts by businesses to decrease expenses and improve efficiency, often to enhance profitability.