Figure 16-6 -Refer to Figure 16-6.In the Dynamic Model of AD-AS in of AD-AS

question 310

Multiple Choice

Figure 16-6
-Refer to Figure 16-6.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 pursue

• A)expansionary fiscal policy.
• B)contractionary fiscal policy.
• C)expansionary monetary policy.
• D)contractionary monetary policy.
• E)expansionary automatic stabilizers.

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Definitions:

Units

Refers to a measure of quantity or amount in a specified dimension such as length, mass, time, etc., or in the context of economics and finance, the smallest portion of a product or financial instrument.

Percent Saving

The percentage of the original price saved as a result of a discount or offer.

U.S. Border

The geographical boundary separating the United States from neighboring countries.

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Goods that are exempt from payment of certain local or national taxes and duties, typically sold at airports and international borders.