Answer Happy

QUESTION 35 Price Level 0 QUESTION 36 Price Level O O AD₁ ADⓇ Refer to the above diagram, in which Qyis the full-employment output. If the economy's current aggregate demand curve is AD 3, it would be appropriate for the government to O reduce government expenditures and taxes by equal-size amounts. O reduce government expenditures or increase taxes. O increase government expenditures or reduce taxes. O reduce unemployment compensation benefits. O 0 AD₁ a positive GDP gap. a negative GDP gap. AD₂ AD₁ a recession. AD3 Q₁ Real GDP AD₂ Refer to the above diagram, in which Qyis the full-employment output. If the economy's current aggregate demand curve is AD 3, it is experiencing O cost-push inflation. AD3 AS Q₁ Real GDP AS