If Short-Run Equilibrium Output Equals 50,000 and Potential Output (Y*)equals

question 110

Multiple Choice

If short-run equilibrium output equals 50,000 and potential output (Y*) equals 45,000, then this economy has a(n) ________ gap that can be closed by ________.

• A)expansionary; decreasing taxes
• B)expansionary; increasing transfer payments
• C)expansionary; decreasing government purchases
• D)recessionary; increasing government purchases

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Definitions:

Infectious Disease

Diseases caused by organisms such as bacteria, viruses, fungi, or parasites, which can be spread, directly or indirectly, from one individual to another.

Sputum Culture

A lab test performed on phlegm (sputum) to identify bacteria or fungi causing respiratory infections or diseases.

Bacillus

A genus of rod-shaped, Gram-positive, spore-forming bacteria found in various environments, some species of which are pathogenic to humans.

Chest X-ray

A radiographic image of the thorax used to diagnose conditions affecting the chest, its contents, and nearby structures.