Exhibit 15-1 -Refer to the Graph in the Exhibit.According to Policymakers Who

question 60

Multiple Choice

Exhibit 15-1

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

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Definitions:

Socioeconomic Status

A combined measure of an individual's or family’s economic and social position relative to others, based on income, education, and occupation.

Sigmund Freud

An Austrian neurologist known for founding psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Id

In psychoanalytic theory, the part of the personality responsible for basic drives and instincts.

Ego

In Freud’s theory, a set of reactions that try to reconcile the id’s blind pleasure strivings with the demands of reality.