Multiple Choice
Expansionary aggregate demand-oriented fiscal policy leads, ceteris paribus, to
A) a short-run fall in both income and the price level.
B) a short-run rise in income and a fall in the price level.
C) no change in the long-run equilibrium level of income and to an increase in the price Level.
D) both an increase in the long-run equilibrium level of income and an increase in the Price level.
Correct Answer:
Verified
Correct Answer:
Verified
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