Use the Following to Answer Questions

question 27

Multiple Choice

Use the following to answer questions:
-(Figure: Fiscal Policy Options) Refer to Figure: Fiscal Policy Options. If the aggregate demand curve is AD:

• A) a contractionary fiscal policy may be warranted.
• B) an expansionary fiscal policy may be warranted.
• C) no change in discretionary fiscal policy is warranted.
• D) the economy is in an inflationary gap.

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Definitions:

Conical Surface

A surface that extends outward and away in all directions from a common point, resembling the shape of a cone.

Frustum

A truncated shape that results from cutting a pyramid or cone with a plane parallel to its base, leaving two bases, one smaller than the other.

Pitch Angle

The angle between the helix of a thread or gear on a cylindrical shaft and an imaginary line perpendicular to the shaft's axis.

Pitch Cone

The imaginary cone that defines the pitch surface of conical gears or screw threads, where the common vertex of the gear teeth or threads would converge.