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What Does Fiscal Policy Primarily Affect in the Long Run

Question 96

Multiple Choice

What does fiscal policy primarily affect in the long run and the short run, respectively?


A) aggregate demand in the long run; aggregate supply in the short run
B) aggregate supply in the long run; saving, investment, and growth in the short run
C) saving, investment, and growth in the long run; aggregate demand in the short run
D) saving, investment, and growth in the long run; aggregate supply in the short run

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