The desired fiscal restraint is equal to

Name: The desired fiscal restraint is equal to
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The desired fiscal restraint is the amount of fiscal policy needed to reduce aggregate demand by the desired amount. This can be calculated by dividing the excess aggregate demand by the multiplier, as the multiplier represents the change in income resulting from a change in government spending or taxation. Therefore, choice B (Excess AD divided by the multiplier) is the best answer.

The Desired Fiscal Restraint Is Equal to