Use the following to answer questions:
Figure: Fiscal Policy II 
-(Figure: Fiscal Policy II) Look at the figure Fiscal Policy II. Suppose that this economy is in equilibrium at E2. If there is an increase in government transfers, _____ will shift to the _____, causing a(n) _____ in the price level and a(n) _____ in real GDP.
A) AD2; right; increase; increase
B) AD2; left; decrease; decrease
C) AD1; right; increase; increase
D) AD1; left; decrease; decrease
Correct Answer:
Verified
Q59: Use the following to answer questions:
Figure: Inflationary
Q60: Use the following to answer questions:
Figure: Inflationary
Q61: Fiscal policy that decreases aggregate demand is:
A)
Q65: Use the following to answer questions:
Figure: Fiscal
Q66: Use the following to answer questions:
Figure: Fiscal
Q67: Use the following to answer questions:
Figure: Fiscal
Q68: Expansionary fiscal policy includes:
A) increasing taxes.
B) increasing
Q72: Contractionary fiscal policy includes:
A) decreasing taxes.
B) increasing
Q76: A contractionary fiscal policy:
A) decreases a government
Q78: A contractionary fiscal policy either _ government
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