Multiple Choice
Use the following to answer questions: 
-(Figure: Fiscal Policy Options) Refer to Figure: Fiscal Policy Options. If the aggregate demand curve is AD:
A) a contractionary fiscal policy may be warranted.
B) an expansionary fiscal policy may be warranted.
C) no change in discretionary fiscal policy is warranted.
D) the economy is in an inflationary gap.
Correct Answer:
Verified
Correct Answer:
Verified
Q22: If overall spending declines and thus the
Q23: If there is a recessionary gap, discretionary
Q24: Which factor is an expansionary fiscal policy?<br>A)
Q25: Use the following to answer questions: <img
Q26: Use the following to answer questions: <img
Q28: Use the following to answer questions: <img
Q29: Use the following to answer questions: <img
Q30: Sources of federal tax revenue do NOT
Q31: If the economy is at equilibrium below
Q32: Decreasing funding for space exploration will shift