An Expansionary Fiscal Policy Shifts the Aggregate Demand Curve

question 140

Multiple Choice

An expansionary fiscal policy shifts the aggregate demand curve

• A) to the right and is used to close an inflationary gap.
• B) to the right and is used to close a recessionary gap.
• C) to the left and is used to close an inflationary gap.
• D) to the left and is used to close a recessionary gap.

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Definitions:

Ethnic Groups

Communities or populations sharing common cultural traits, geographical origins, linguistic backgrounds, or ancestry.

Population Growth

An increase in the number of people that reside in a country, region, or city, which can impact various aspects of society including demand for products and services.

Government Subsidies

Financial assistance provided by the government to organizations, individuals, or industries to support activities deemed beneficial for the public good.

Currency Fluctuation

The variation in the value of one currency relative to another in the global market.