Figure 18-6 -Refer to Figure 18-6.In the Dynamic Model of AD-AS in Model

question 255

Multiple Choice

Figure 18-6

-Refer to Figure 18-6.In the dynamic model of AD-AS in the figure above,if the economy is at point A in year 1 and is expected to go to point B in year 2,Congress and the president would most likely

• A) increase the money supply and decrease the interest rate.
• B) increase taxes.
• C) increase government spending.
• D) increase oil prices.
• E) raise interest rates.

---

Definitions:

Simplistic

An overly simple view or explanation of something that does not account for all the complexities involved.

Social Desirability

The tendency of respondents to answer questions in a manner that will be viewed favorably by others.

Misrepresent

To give a false or misleading representation of facts or information.

Withdrawn Feedback

Feedback that has been retracted or withheld, particularly in contexts where it might have been expected or solicited.