Multiple Choice
When aggregate demand is high enough to drive unemployment below the natural rate,
A) there is downward pressure on the price level,and the government may want to conduct contractionary fiscal policy.
B) the economy is slipping into a recession,and the government may want to conduct expansionary fiscal policy.
C) there is upward pressure on the price level,and the government may want to conduct contractionary fiscal policy.
D) there is upward pressure on the price level,and the government may want to conduct expansionary fiscal policy.
E) there is downward pressure on the price level,and the government may want to conduct expansionary fiscal policy.
Correct Answer:
Verified
Correct Answer:
Verified
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