If There Is an Inflationary Gap in the Economy, Discretionary

question 38

Multiple Choice

If there is an inflationary gap in the economy, discretionary fiscal policy will likely include action to:

• A) shift aggregate demand to the right.
• B) prevent the aggregate demand curve from shifting.
• C) shift aggregate demand to the left.
• D) shift both aggregate demand and short-run aggregate supply to the left.

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Definitions:

Axis V

Axis V refers to the Global Assessment of Functioning scale, historically used in psychiatric diagnoses to rate an individual's overall psychological, social, and occupational functioning.

Axis I

A classification in earlier versions of the Diagnostic and Statistical Manual of Mental Disorders (DSM) that includes clinical disorders and other conditions that may be a focus of clinical attention.

Personality Disorders

Mental health conditions characterized by enduring patterns of behavior, cognition, and inner experience that deviate from the expectations of the culture.

Personality Disorder

A type of mental disorder characterized by enduring maladaptive patterns of behavior, cognition, and inner experience.