If You Were to Use an Aggregate Supply Aggregate Demand

question 17

Multiple Choice

If you were to use an Aggregate Supply Aggregate Demand diagram to model nondiscretionary and discretionary fiscal policy in reaction to a positive aggregate demand shock, you would see the aggregate demand curve move

• A)to the right as a result of the shock.
• B)to the left as a result of the shock.
• C)back toward its pre-shock position as a result of these policies.
• D)to the right, back toward its pre-shock position as a result of these policies.

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Definitions:

Schizophrenia

A complex mental health disorder characterized by disruptions in thought processes, perceptions, emotional responsiveness, and social interactions.

Positive Symptoms

Features that are added to a person’s behavior and experience, such as hallucinations or delusions, especially in the context of psychiatric disorders.

Prozac

A brand name for fluoxetine, a widely prescribed antidepressant belonging to the selective serotonin reuptake inhibitor (SSRI) class.

Hopeless

A feeling or state of despair when an individual perceives no possible solutions or outcomes to a difficult situation.