Multiple Choice
Suppose that instead of using discretionary fiscal policy to close an expansionary gap, policymakers left the economy alone.What would probably happen?
A) Depression would result.
B) The economy would be stuck in the gap.
C) The aggregate demand curve would shift, eliminating the problem.
D) The gap would close after a spurt of inflation.
Correct Answer:
Verified
Correct Answer:
Verified
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