(Figure: Fiscal Policy Options) Use Figure: Fiscal Policy Options. If the aggregate demand curve is AD':
A) a contractionary fiscal policy may be warranted.
B) a contractionary fiscal policy may be warranted
C) an expansionary fiscal policy may be warranted.
D) an expansionary fiscal policy may be warranted
E) the economy is in long-run equilibrium.
F) the economy is in long-run equilibrium
G) the economy is experiencing an inflationary gap
H) the economy is experiencing an inflationary gap.
Correct Answer:
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Q133: (Figure: Fiscal Policy Options) Use Figure: Fiscal
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Q140: (Figure: Fiscal Policy Options) Use Figure: Fiscal
Q141: (Figure: Short-Run Equilibrium) Use Figure: Short-Run Equilibrium.
Q142: (Figure: Fiscal Policy Options) Use Figure: Fiscal
Q143: (Figure: Short-Run Equilibrium) Use Figure: Short-Run Equilibrium.
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