An increase in government purchases of $200 billion will shift the aggregate demand curve to the right by
A) $200 billion.
B) less than $200 billion.
C) more than $200 billion.
D) None of these options is correct. This policy shifts the long-run aggregate supply curve.
Correct Answer:
Verified
Q41: What is 'expansionary fiscal policy' and under
Q43: 'Expansionary fiscal policy' is used by the
Q45: Figure 17.5 Q47: Figure 17.4 Q48: Consider the hypothetical information in the following Q48: An appropriate fiscal policy response when aggregate Q51: If the economy is growing beyond potential Q53: Suppose the economy is in the state Q56: Identify each of the following as (i)part Q57: Tax increases on business income slow down
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