In the short run,a contractionary fiscal policy would cause
A) the AD curve to shift to the right
B) equilibrium real GDP to decrease and the price level to increase
C) the AS curve to shift left
D) the economy to slide along the AD curve
E) equilibrium GDP and the price level to fall
Correct Answer:
Verified
Q90: If output exceeds its full-employment level,the wage
Q91: Q92: If the government decreases taxes,which of the Q93: The self-correcting mechanism is the reason that Q94: Equilibrium GDP Q96: A negative demand shock Q97: In the short run,a negative demand shock Q98: In the short run,an increase in the Q99: A positive demand shock may Q100: The economy's self-correcting mechanism is such that
A) is not affected by nominal
A) shifts the AD
A) cause an
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents