-In the Figure Above,assume That Output Is $10

question 77

Multiple Choice

-In the figure above,assume that output is $10.5 trillion,while potential output is $12 trillion.Suppose that a combination of fiscal stimulus and recovery of consumer and business confidence shifts the IS and AD curves,as shown in the figure,while monetary policy sets the real interest rate at one percent.If the short-run aggregate supply curve is π = Y - 13,then the resulting values of output and inflation are ________.

• A)$12 trillion & 3 percent
• B)$13.5 trillion & 5 percent
• C)$9.75 trillion & 0 percent
• D)$13.5 trillion & 0 percent
• E)$12.5 trillion & 2 percent

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Definitions:

Experience of Flow

A mental state in which a person performing an activity is fully immersed in a feeling of energized focus, full involvement, and enjoyment in the process.

Strengths-Based Leadership

A leadership approach focusing on identifying and maximizing the individual strengths of team members to improve organization performance.

Managing by Objectives

A management strategy wherein employees and managers collaborate to identify and set clear objectives to be achieved within a specific timeframe.

Operant Conditioning

A methodology for learning that involves modifying the emphasis of behaviors via positive or negative feedback mechanisms.