-Refer to Exhibit 15-5

question 185

Multiple Choice

-Refer to Exhibit 15-5.At short-run equilibrium,this economy is in a(n) ___________________ gap.An economist who believes that the economy is self-regulating would assert that _____________________________.

• A) inflationary; the SRAS curve will shift leftward sufficiently to close the inflationary gap
• B) recessionary; the SRAS curve will shift rightward sufficiently to close the recessionary gap
• C) inflationary; the AD curve will shift leftward sufficiently to close the inflationary gap
• D) recessionary; the AD curve will shift rightward sufficiently to close the recessionary gap

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Definitions:

National Bank

A financial institution chartered by the federal government, which among other things, manages the country's money supply and implements monetary policy.

Economic Policies

Plans and actions taken by a government to influence its country's economy, including measures related to taxation, government budgets, money supply, and interest rates.

Nineteenth Century

The period of time extending from January 1, 1801, to December 31, 1900, a century marked by significant industrial, cultural, and political change.

United States v. Lopez

A 1995 Supreme Court case that ruled the Gun-Free School Zones Act of 1990 as unconstitutional for exceeding Congress's authority under the Commerce Clause.