Suppose the Economy Is at a Point Below Its Institutional

question 103

Multiple Choice

Suppose the economy is at a point below its institutional production possibilities frontier.To improve this situation,Keynesian economists might propose that the government should __________ expenditures,which will cause the aggregate demand curve to shift to the __________ in an attempt to close this __________ gap.

• A) decrease; left; inflationary
• B) increase; right; inflationary
• C) decrease; right; inflationary
• D) increase; right; recessionary
• E) decrease; left; recessionary

---

Definitions:

Brand Licensing

A legal authorization by a brand owner allowing another company to use its brand, logo, or product names for a specified purpose and period.

Local

Relating to or occurring in a particular area, community, or locality; often used to emphasize the importance of community-based or region-specific characteristics.

Reterritorialization

The process by which a space or territory is reorganized and redefined, often in response to social, cultural, or economic changes.

Mass Tourism

Large-scale tourism that involves a significant number of visitors to a particular destination, often leading to environmental and cultural impact.