The Figure Above Shows a Nation's Aggregate Demand Curve, Aggregate

question 61

Multiple Choice

The figure above shows a nation's aggregate demand curve, aggregate supply curve, and potential GDP.
-In the figure above, the ________ gap is one trillion dollars. To close the gap, the government can change expenditure by ________ one trillion dollars.

• A) inflationary; more than
• B) inflationary; exactly
• C) recessionary; more than
• D) recessionary; less than
• E) recessionary; exactly

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Definitions:

Pelvic Floor

The pelvic floor is a group of muscles and ligaments in the pelvic area that support the organs in the pelvis like the bladder, intestines, and, in women, the uterus.

Coccyx

The small, triangular bone at the base of the spinal column, often referred to as the tailbone, which is the remnant of a human tail.

Internal Intercostal

Muscles located between the ribs that play a role in the forced expiration of air from the lungs.

Abdominal Wall

The layers of muscles and connective tissue that enclose the abdominal cavity and support its organs.