Fiscal policy actions that are intended to have long-run effects on real GDP attempt to increase ________ through changing ________.
A)aggregate demand; government spending
B)aggregate supply; taxes
C)aggregate demand; taxes
D)aggregate supply; government spending

Question

Quizplus · Accepted Answer

Fiscal policy actions intended to have long-run effects on real GDP aim to increase aggregate supply by changing taxes, such as through tax cuts or incentives that encourage investment and productivity.

Fiscal Policy Actions That Are Intended to Have Long-Run Effects