Use the Following to Answer Questions

question 211

Multiple Choice

Use the following to answer questions
Figure: Aggregate Demand and Fiscal Policy
-(Figure: Aggregate Demand and Fiscal Policy) Refer to the figure.In the best case scenario,effective fiscal policy would take which action to correct an economy in recession at point Z?

• A) increase aggregate demand to move the economy to point X
• B) increase the LRAS curve to a level above 3%
• C) decrease the LRAS curve to a level below 2%
• D) increase aggregate demand to move the economy to point W

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Definitions:

Memory Changes

The alteration in memory function, which can include improvement or decline, often influenced by aging, stress, and neurological factors.

Older

Refers to a more advanced age, typically denoting an increased number of years in the life of a person, object, or concept.

Cognitive Psychologist

A professional who studies mental processes such as perception, memory, thinking, problem-solving, and decision-making.

Reflexively

Done automatically without conscious thought as a spontaneous reaction or response.