While Targeting the Deficit, Which of the Following Is Likely

question 134

Multiple Choice

While targeting the deficit, which of the following is likely to occur after a negative aggregate demand shock?

• A) AD↓ ⇒ Y↓ ⇒ T↓ ⇒ deficit↑ ⇒ G↓ ⇒ AD↓ ⇒ Y↓
• B) AD↓ ⇒ Y↓ ⇒ T↓ ⇒ deficit↑ ⇒ G↑ ⇒ AD↑ ⇒ Y↑
• C) AD↓ ⇒ Y↓ ⇒ T↓ ⇒ deficit↑ ⇒ G↓ ⇒ AD↑ ⇒ Y↑
• D) AD↓ ⇒ Y↓ ⇒ T↑ ⇒ deficit↑ ⇒ G↑ ⇒ AD↓ ⇒ Y↓

---

Definitions:

Suspensory Ligaments

Suspensory ligaments are fibrous tissues that support organs, such as the lens of the eye, by attaching them to surrounding structures.

Biconcave

Describes a shape that is curved inward on both sides, like a donut.

Opaque

A characteristic of materials that are not transparent or translucent; they do not allow light to pass through.

Vascular Tunic

Middle layer of the eye; contains many blood vessels.