Multiple Choice
Expansionary fiscal policy should be used if:
A) aggregate demand-aggregate supply equilibrium is below potential output.
B) aggregate demand-aggregate supply equilibrium is above potential output.
C) aggregate demand-aggregate supply equilibrium is equal to potential output.
D) none of the above.
Correct Answer:
Verified
Correct Answer:
Verified
Q14: Increases in resources and efficiency would increase
Q15: Economic variables that tend to move in
Q16: Expansionary fiscal policy will shift the AD
Q17: Explain how the aggregate demand curve is
Q18: Why is judging trends in economic indicators
Q20: A decrease in consumer confidence would shift
Q21: An increase in the price level will
Q22: An increase in the amount of resources
Q23: Higher prices and price increases combined with
Q24: An increase in foreign real income would