Exhibit 15-2 -Refer to the Graph in the Exhibit.According to Policymakers Who

question 88

Multiple Choice

Exhibit 15-2

-Refer to the graph in the exhibit.According to policymakers who favour an active approach to policy, how can the economy attain equilibrium at potential output?  

• A) by shifting the SRAS curve shift to the left
• B) by shifting the SRAS curve shift to the right
• C) by increasing the money supply or by increasing government spending
• D) by decreasing aggregate demand

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Definitions:

Utilitarian Needs

are needs that are pragmatic and practical, fulfilling a functional requirement rather than an emotional one.

Tangible Attributes

Physical characteristics and features of a product that can be directly observed and measured by consumers.

Motivational Conflict

A situation where an individual faces competing desires or interests, leading to indecision or difficulty in choosing a course of action.

Dodge Durango

A model of SUV (Sport Utility Vehicle) produced by the American automobile manufacturer Dodge.