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)the economy is in long-run equilibrium.
B)an expansionary fiscal policy may be warranted.
C)a contractionary fiscal policy may be warranted.
D)the economy is in a recessionary gap.

Question

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)the economy is in long-run equilibrium. 
B)an expansionary fiscal policy may be warranted. 
C)a contractionary fiscal policy may be warranted. 
D)the economy is in a recessionary gap.

Quizplus · Accepted Answer

The Answer of 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)the economy is in long-run equilibrium. 
B)an expansionary fiscal policy may be warranted. 
C)a contractionary fiscal policy may be warranted. 
D)the economy is in a recessionary gap.

Use the Following to Answer Questions