Use the following to answer questions:
Figure: Fiscal Policy Options 
-(Figure: Fiscal Policy Options) Look at the figure Fiscal Policy Options. If the aggregate demand curve is AD:
A) a contractionary fiscal policy may be warranted.
B) an expansionary fiscal policy may be warranted.
C) no change in discretionary fiscal policy is warranted.
D) the economy is in an inflationary gap.
Correct Answer:
Verified
Q62: An expansionary fiscal policy:
A) usually decreases a
Q66: Expansionary fiscal policy includes:
A) decreasing taxes.
B) increasing
Q67: Contractionary fiscal policy includes:
A) decreasing taxes.
B) decreasing
Q80: Use the following to answer questions:
Figure: Fiscal
Q81: Use the following to answer questions:
Figure: Fiscal
Q83: Use the following to answer questions :
Figure:
Q84: Use the following to answer questions :
Figure:
Q85: Use the following to answer questions:
Figure: Fiscal
Q87: Use the following to answer questions:
Figure: Fiscal
Q91: Contractionary fiscal policy shifts the aggregate demand
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