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Based on the Figure Below

question 126

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Based on the figure below. Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at__ creating _____gap. Based on the figure below. Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD<sup>1</sup> to AD will lead to a short-run equilibrium at__ creating _____gap.   A)  D; an expansionary B)  D; a recessionary C)  B; no output D)  B; recessionary


Definitions:

Impending Surgery

Refers to an approaching or forthcoming surgical operation planned to correct a medical condition.

Aphasic

Relating to or affected by aphasia, which is a condition characterized by the loss of the ability to understand or express speech, caused by brain damage.

Picture Board

A communication aid consisting of pictures, symbols, or words, used by individuals with speech or language difficulties to convey messages and express needs.

Intermittent Shake

A temporary and periodic trembling or shivering movement or condition, which may occur due to various reasons including cold, fear, or medical conditions.

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