-The AD-AS Model in the Diagram Above Shows That at the Initial

question 8

Multiple Choice

-The AD-AS model in the diagram above shows that at the initial short-run equilibrium point B,the economy is experiencing ___________ gap.Starting from point B,an increase in government purchases that shifts the aggregate demand curve from AD to AD' will lead to the long-run equilibrium at point C,thus raising output at a ___________ price level.

• A) a recessionary;lower
• B) an expansionary;higher
• C) a recessionary;constant
• D) an expansionary;constant
• E) a recessionary;higher

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Definitions:

Society

A group of individuals involved in persistent social interaction, or a large social group sharing the same geographical or social territory, typically subject to the same political authority and dominant cultural expectations.

Performance Management

The ongoing process of communication and feedback between a supervisor and an employee to ensure the achievement of organizational goals.

Annual Performance Appraisal

A yearly review and evaluation of an employee's job performance and overall contribution to a company.

Skills Mismatch

A discrepancy between the skills offered by workers and the skills demanded by employers, leading to inefficiencies in the labor market.