If fiscal policy is used to close an expansionary gap,the
A) SRAS curve shifts leftward and the price level falls
B) SRAS curve shifts rightward and the price level increases
C) SRAS curve shifts rightward and the price level falls
D) AD curve shifts leftward and the price level decreases
E) AD curve shifts rightward and the price level decreases
Correct Answer:
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Q44: To close an expansionary gap,the government can
A)increase
Q45: Suppose that instead of using discretionary fiscal
Q47: If net taxes exceed government purchases,
A)the price
Q48: Reducing net taxes and reducing government purchases
Q50: What set of policies could the government
Q51: To close an expansionary gap using fiscal
Q54: Suppose the government reduces its budget deficit
Q121: Expansionary and contractionary gaps are automatically eliminated
Q129: One disadvantage of discretionary fiscal policy is
Q134: A decrease in government purchases can close
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