Which of the following statements about fiscal policy is true?
A) Real Gross Domestic Product (GDP) can be increased above its long-run equilibrium only in the short run.
B) Real Gross Domestic Product (GDP) can never be increased above its long-run equilibrium, even for a brief period of time.
C) Government can shift the aggregate demand curve inward by increasing spending.
D) Government can shift the aggregate demand curve outward by reducing spending.
Correct Answer:
Verified
Q61: Suppose the current level of real GDP
Q66: Discretionary Fiscal policy
A)is the use of government
Q68: Q69: Which one of the following is an Q73: Government spending conducted for the purpose of Q75: What is discretionary fiscal policy and what Q76: When the current short-run equilibrium is to
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents