Figure 27-5 -Refer to Figure 27-5. in the Dynamic Model of AD-AS

question 16

Multiple Choice

Figure 27-5
-Refer to Figure 27-5. In the dynamic model of AD-AS in the figure above, if the economy is at point A in year 1 and is expected to go to point B in year 2, Congress and the president would most likely pursue

• A) expansionary fiscal policy.
• B) contractionary fiscal policy.
• C) expansionary monetary policy.
• D) contractionary monetary policy.
• E) contractionary automatic stabilizers.

---

Definitions:

Negotiable Instrument

A written, signed document that promises payment of a specified sum of money to the bearer or a named party.

Pay To The Order

A directive on a negotiable instrument, such as a check, indicating that the designated amount should be paid to the entity or person specified.

Drawer

The person who writes or issues a check, draft, or bill of exchange, thereby creating an obligation to pay.

Payee

The individual or entity to whom money is payable, typically the recipient of a check or electronic payment.