In the _______ range of the aggregate supply curve, expansionary fiscal policy that causes aggregate ______ to increase will lead to a higher price level and a higher equilibrium level of real GDP.
A) Keynesian, supply
B) classical, demand
C) intermediate, demand
D) intermediate, supply

Question

In the _______ range of the aggregate supply curve, expansionary fiscal policy that causes aggregate ______ to increase will lead to a higher price level and a higher equilibrium level of real GDP.
A) ​Keynesian, supply
B) ​classical, demand
C) ​intermediate, demand
D) ​intermediate, supply

Quizplus · Accepted Answer

The Answer is C

In the _______ Range of the Aggregate Supply Curve, Expansionary