Use the Following to Answer Questions

question 307

Multiple Choice

Use the following to answer questions:
Figure: Short- and Long-Run Equilibrium II
-(Figure: Short- and Long-Run Equilibrium II) Look at the figure Short- and Long-Run Equilibrium II. If the economy is at equilibrium at E₁, the government should use _____ fiscal policy to shift the aggregate demand curve to the _____.

• A)expansionary; right
• B)expansionary; left
• C)contractionary; right
• D)contractionary; left

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Definitions:

Confrontation

A direct or hostile opposition or encounter between individuals or groups, often involving a challenge or conflict.

Agency-Structure

A key sociological concept that explores the relationship between individual human agency (the capacity to act) and social structure (the constraints imposed by social systems).

Political Economy

A branch of social science that studies the relationships between individuals, societies, and governments, focusing on the production, distribution, and consumption of goods and services.

Globalization

The process by which businesses, cultures, and economies become interconnected and interdependent through global networks of trade, communication, and transportation.