ECONOMICS 1120180 - MULTIPLECHOICE. Figure16-5 90...

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
Figure 16 - 5
90) 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
A) increase government spending.
B) lower interest rates.
C) increase oil prices.
D) decrease government spending.
E) increase taxes.
Answer: A
90)
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Learning Outcome: Macro - 6: Explain the aggregate supply - aggregate demand model.
91) 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, and no fiscal or monetary policy is
pursued, then at point B
91)
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Learning Outcome: Macro - 6: Explain the aggregate supply - aggregate demand model.
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92) 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
92)
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Learning Outcome: Macro - 9: Discuss fundamental approaches to fiscal policy.