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Author Question: Refer to Figure 16-6. In the dynamic model ofAD-ASin the figure above, if the economy is ... (Read 51 times)

urbanoutfitters

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Question 1

Figure 16-5











Refer to Figure 16-5.  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


◦ expansionary fiscal policy.
◦ contractionary fiscal policy.
◦ expansionary monetary policy.
◦ contractionary monetary policy.
◦ contractionary automatic stabilizers.

Question 2

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


◦ increase the money supply and decrease the interest rate.
◦ increase taxes.
◦ increase government spending.
◦ increase oil prices.
◦ raise interest rates.


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Marked as best answer by urbanoutfitters on Mar 16, 2019

cloudre37

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urbanoutfitters

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Reply 2 on: Mar 16, 2019
YES! Correct, THANKS for helping me on my review


mcabuhat

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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