The Diagram Below Shows an AD/AS Model for a Hypothetical

question 126

Multiple Choice

The diagram below shows an AD/AS model for a hypothetical economy.The economy begins in long-run equilibrium at point A. FIGURE 24-4
-Refer to Figure 24-4.The initial effect of the positive AS shock shown in the diagram results in

• A)a recessionary output gap of 250.
• B)a recessionary output gap of 450.
• C)an inflationary output gap of 200.
• D)an inflationary output gap of 300.
• E)an inflationary output gap of 550.

Understand the role of the federal government in regulating states and localities through unfunded mandates and preemption.

Recognize the impact of federalism on local governance, including inequalities and decentralization.

Familiarize with the arguments for and against federalism, including those of Anti Federalists, and the historical context of federalism debates.

Understand the concept and historical context of dual federalism in the United States.

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Definitions:

Composition

The process of combining two functions by applying one function to the results of another.

Function

A relation between sets that assigns to each element of a set exactly one element of another set.

Composition

The process of combining two functions in such a way that the output of one function becomes the input of another.

Function

A relation between a set of inputs and a set of permissible outputs, often defined by an equation.