Most economists believe that fiscal policy affects which of the following?
A)only aggregate demand and not aggregate supply
B)mostly aggregate demand
C)mostly aggregate supply
D)only aggregate supply and not aggregate demand

Question

Quizplus · Accepted Answer

Most economists believe that fiscal policy affects mostly aggregate demand because it involves changes in government spending and taxation, which influence the overall demand for goods and services in the economy. Fiscal policy can also have some impact on aggregate supply through changes in investment, but its primary effect is on aggregate demand.

Most Economists Believe That Fiscal Policy Affects Which of the Following