Use the figure below to answer the following questions.
Figure 13.3.1
-Refer to Figure 13.3.1, which shows the outlays and revenues for the government of Pianoland.Discretionary expansionary fiscal policy would be shown as
A)an upward shift of the outlays curve.
B)a movement from left to right along the revenues curve.
C)a movement from left to right along the outlays curve.
D)an upward shift of the revenues curve.
E)both A and C

Question

Use the figure below to answer the following questions.
  Figure 13.3.1
-Refer to Figure 13.3.1, which shows the outlays and revenues for the government of Pianoland.Discretionary expansionary fiscal policy would be shown as
A)an upward shift of the outlays curve. 
B)a movement from left to right along the revenues curve. 
C)a movement from left to right along the outlays curve. 
D)an upward shift of the revenues curve. 
E)both A and C

Quizplus · Accepted Answer

Discretionary expansionary fiscal policy involves increasing government spending and/or cutting taxes in order to stimulate economic growth. This would be represented by an upward shift of the outlays curve in Figure 13.3.1, indicating an increase in government spending.

Use the Figure Below to Answer the Following Questions