Given AD₁ and AS₁ in Figure 8

question 87

Multiple Choice

Given AD₁ and AS₁ in Figure 8.3,the classical approach to achieving full employment at an output of $300 billion would be to

• A)Increase taxes and increase government spending to shift AD₁ to AD₂.
• B)Increase the growth of the money supply to shift AD₁ to AD₂.
• C)Do nothing and wait for "natural" market forces to achieve full employment.
• D)Use all available supply-side options.

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Definitions:

Positive Symptoms

Symptoms of psychological conditions that are an addition to a person's normal behavior, characteristic of disorders like schizophrenia, including hallucinations and delusions.

Schizophrenia

A mental disorder characterized by distorted thinking, perceptions, emotions, language, sense of self, and behavior, often manifesting through hallucinations and delusions.

Abnormal Behaviors

Actions, reactions, or emotions that deviate significantly from those considered typical or normal within a culture or society.

Schizophrenia

A long-term mental disorder involving a breakdown in the relation between thought, emotional control, and behavior, leading to faulty perception, inappropriate actions and feelings, withdrawal from reality and personal relationships into fantasy and delusion, and a sense of mental fragmentation.