Solved

When Aggregate Demand Shifts Because of Expansionary Fiscal Policy, Then

Question 48

Multiple Choice

When aggregate demand shifts because of expansionary fiscal policy, then the impact of the fiscal policy for:


A) increasing GDP will be weakened by an increase in the price level.
B) increasing GDP will be strengthened by the decrease in the price level.
C) decreasing GDP will be strengthened if crowding out occurs.
D) increasing GDP will be weakened if crowding out occurs.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents