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Countercyclical Fiscal Policy Involves Changing Government Spending in Order to Shift

Question 75

Multiple Choice

Countercyclical fiscal policy involves changing government spending in order to shift the ________ curve,while supply-side fiscal policy involves changing government spending in order to shift the ________ curve.


A) aggregate demand (AD) ; short-run aggregate supply (SRAS)
B) long-run aggregate supply (LRAS) ; aggregate demand (AD)
C) aggregate demand (AD) ; aggregate demand (AD)
D) aggregate demand (AD) ; long-run aggregate supply (LRAS)
E) long-run aggregate supply (LRAS) ; long-run aggregate supply (LRAS)

Correct Answer:

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