When the AD Curve Is Vertical

question 191

Multiple Choice

When the AD curve is vertical,

• A) fiscal policy can be used to increase output.
• B) monetary policy can be used to increase output.
• C) both fiscal policy and monetary policy can be used to increase output.
• D) neither fiscal policy nor monetary policy can be used to increase output.

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Definitions:

Abandoned Property

Property that has been discarded by the owner, who has no intention of reclaiming it.

Lost Property

Property that the owner has involuntarily parted with and then cannot find or recover.

Mislaid Property

Property that is intentionally set down by someone who then forgets to retrieve it, differing from lost or abandoned property.

Prize-Winning Horse

A horse that has won awards or recognition in competitive events or shows due to its performance, breed qualities, or other characteristics.