Multiple Choice
Country Y is in the midst of an expansion.If the government wants output to again equal potential output,then it should pursue ________ fiscal policy and shift the ________ curve.
A) expansionary; aggregate demand (AD)
B) contractionary; long-run aggregate supply (LRAS)
C) contractionary; short-run aggregate supply (SRAS)
D) contractionary; aggregate demand (AD)
E) expansionary; short-run aggregate supply (SRAS)
Correct Answer:
Verified
Correct Answer:
Verified
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