Contractionary fiscal policy is designed to
A) reduce real national income and increase the price level.
B) reduce real national income and reduce the price level.
C) raise both real national income and the price level.
D) raise the price level only.
Correct Answer:
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Q13: Suppose the economy is experiencing a inflationary
Q14: The adjustment of government spending and taxes
Q15: Suppose the economy is experiencing a contractionary
Q16: Expansionary fiscal policy is designed to
A)increase real
Q17: If the government decreases spending to move
Q19: If the government wants to increase real
Q20: Which of the following statements about fiscal
Q21: If the government decreases aggregate demand when
Q22: Suppose the economy is at a short
Q23: Suppose the economy is at an equilibrium
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