Suppose That Instead of Using Discretionary Fiscal Policy to Close

question 52

Multiple Choice

Suppose that instead of using discretionary fiscal policy to close an expansionary gap,policy makers left the economy alone.What would probably happen?

• A)depression would result
• B)the economy would be stuck in an expansionary gap
• C)the aggregate demand curve would shift,eliminating the problem
• D)the gap would close after a spurt of inflation
• E)the short-run aggregate supply curve would shift to the right

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Definitions:

Personal Utility

Personal Utility reflects the personal value or benefit an individual derives from using a product or service, based on their unique needs, preferences, or satisfaction.

Validation

The process of confirming the accuracy or legitimacy of something through the provision of evidence or logical support.

Altruistic

Characterized by selfless concern for the well-being of others, often resulting in acts of kindness without expectation of personal gain.

Social Personality

The characteristics and behaviors an individual presents on social media platforms, which may differ from their offline personality.