Figure 16-6 -Refer to Figure 16-6.In the Dynamic Model of AD-AS in of AD-AS

question 310

Multiple Choice

Figure 16-6
-Refer to Figure 16-6.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 pursue

• A)expansionary fiscal policy.
• B)contractionary fiscal policy.
• C)expansionary monetary policy.
• D)contractionary monetary policy.
• E)expansionary automatic stabilizers.

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Definitions:

Productivity High

refers to a state of efficiency where an individual or organization can produce significant amounts or high-quality outputs within a given period.

Outputs Constant

A condition where the quantity of production or output remains unchanged over a period of time.

Decreasing Inputs

The process or trend of reducing the amount of resources, labor, or material used in the production of goods or services.

Productivity Ratio

A measure of the efficiency of production, often calculated as the ratio of outputs produced to inputs used.