Figure 17.4 
-In Figure 17.4,if fiscal policy is successful at moving the economy from point B to equilibrium at potential GDP,which of the following will occur?
A) The price level will rise.
B) Deflation will occur.
C) Unemployment will fall.
D) Unemployment will rise.
Correct Answer:
Verified
Q43: Contractionary fiscal policy to prevent real GDP
Q43: 'Expansionary fiscal policy' is used by the
Q44: Assume that the economy is in the
Q45: Figure 17.5 Q47: Use the dynamic aggregate demand and aggregate Q48: Consider the hypothetical information in the following Q48: An appropriate fiscal policy response when aggregate Q50: An increase in government purchases of $200 Q56: Identify each of the following as (i)part Q57: Tax increases on business income slow down
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