Solved

The Economy Is in a Recessionary Gap,there Is Incomplete Crowding

Question 56

Multiple Choice

The economy is in a recessionary gap,there is incomplete crowding out,and government implements expansionary fiscal policy.It follows that


A) Real GDP will fall.
B) the AD curve will shift to the right.
C) the price level will fall.
D) the recessionary gap will necessarily be completely eliminated.
E) b and d

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions