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Question 318

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Use the following to answer questions:
Figure: Fiscal Policy Options Use the following to answer questions: Figure: Fiscal Policy Options -(Figure: Fiscal Policy Options) Look at the 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.
-(Figure: Fiscal Policy Options) Look at the 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.

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