In the short run, expansionary fiscal policy usually will
A) increase both real GDP and the price level.
B) increase real GDP and decrease the price level.
C) decrease the price level and increase real GDP.
D) decrease both real GDP and the price level.
Correct Answer:
Verified
Q48: Fiscal policy involves the actions of
A) taxation
Q49: Which of the following fiscal policy actions
Q50: In the short run, if the government
Q51: Suppose there currently is an inflationary gap.
Q52: If there is a deliberate change in
Q54: How might fiscal policy be used to
Q55: Which of the following fiscal policy actions
Q56: How might fiscal policy be used to
Q57: Expansionary fiscal policy is used to
A) flight
Q58: When the government cuts taxes,
A) the long-run
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