-Based on the Diagram Above,starting from a Long-Run Equilibrium at Point

question 18

Multiple Choice

-Based on the diagram above,starting from a long-run equilibrium at point C,an increase in government spending that increases aggregate demand from ADI to ADI¹ will lead to a short-run equilibrium at point ________,creating _________ gap.

• A) D;an expansionary
• B) D;a recessionary
• C) D;no output
• D) B;an expansionary
• E) B;a recessionary

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Definitions:

Deposit Slip

A document accompanying a bank deposit, detailing the amount of cash and/or checks being deposited.

Electronic Funds Transfer System

A system that transfers money from one bank account directly to another without any paper money changing hands, often used for payroll, direct deposit, and bill pay services.

Stop Payment

A method by which the maker of a check may stop payment of a check(s) written.

Refuse To Honor

The decision not to accept or recognize an agreement, request, or obligation, often due to perceived invalidity or impracticality.