Figure 27-6 -Refer to Figure 27-6. in the Dynamic Model of AD-AS

question 208

Multiple Choice

Figure 27-6
-Refer to Figure 27-6. In the dynamic model of AD-AS in the figure above, if the economy is at point A in year 1 and is expected to go to point B in year 2, Congress and the president would most likely

• A) increase the money supply and decrease the interest rate.
• B) increase taxes.
• C) increase government spending.
• D) increase oil prices.
• E) raise interest rates.

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Definitions:

Parasympathetic Effect

The impact of the parasympathetic nervous system, which promotes relaxation, digestion, and nutrient absorption, counterbalancing the sympathetic system.

Bronchioles

Small airways in the lungs that stem from the bronchi, leading to alveolar ducts and eventually to alveoli, where gas exchange occurs.

Urinary Bladder

A muscular sac in the pelvis, just above and behind the pubic bone, that stores urine before it is excreted from the body.

Preganglionic Neuron

A preganglionic neuron is a nerve cell that projects from the central nervous system to a ganglion, part of the autonomic nervous system, where it synapses with postganglionic neurons.