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:

Subclavian Vein

A major vein located under the collarbone that receives blood from the arm and parts of the neck and chest.

Lymph Drainage

The process by which the lymphatic system collects and removes bodily wastes and excess fluids from tissues.

Lymph Nodes

Lymph nodes are small, bean-shaped structures that filter lymph fluid and house white blood cells, which battle infection.

Filtered

A process of removing or separating unwanted substances from a liquid, gas, or solid by passing it through a medium that retains the undesired materials.