Use the Following to Answer Questions

question 361

Multiple Choice

Use the following to answer questions:
Figure: AD-AS
-(Figure: AD-AS) Look at the figure AD-AS. Consider an economy that is producing an output level of Y₁. The economy has a(n) _____ gap, which can be closed by _____ fiscal policy.

• A)recessionary; expansionary
• B)inflationary; contractionary
• C)inflationary; expansionary
• D)recessionary; contractionary

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Definitions:

Automate

The use of technology to perform tasks with minimal human intervention.

Overdraw

Occurs when an account's balance goes below zero because more money has been withdrawn from the account than was available.

Sales Receipt

A document that provides evidence of a transaction in which goods or services are purchased and paid for in full at the time of the sale.

Time of Sale

The exact moment a transaction is completed and finalized, often referring to the point when a customer makes a payment to a merchant in exchange for goods or services.