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

question 139

Multiple Choice

Use the figure below to answer the following question(s) .
Figure 12-1

-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:

New Product

A new product is an item or service that has been recently developed or significantly improved, offering new features or benefits to the market.

Marginal Utility

The additional satisfaction or utility that a consumer receives from consuming an additional unit of a good or service.

Product Z

A hypothetical product used in discussions or examples when no specific product is being referenced.

Consumer's Income

The total amount of income available to an individual or household for spending on goods and services.