While Targeting the Deficit, Which of the Following Is Likely

question 243

Multiple Choice

While targeting the deficit, which of the following is likely to occur after a positive 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↑

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Definitions:

Internal Threads

Threads located on the inside surface of a hole or cylinder, designed to mate with external threads of a bolt or screw.

Tap

A hand- or machine-actuated tool used to cut internal threads.

Click Type

A type of mechanism, often found in torque wrenches, that produces a clicking sound to signal the user when a pre-set torque value is reached.