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:

Esteem Needs

According to Maslow's hierarchy of needs, the need for self-esteem, achievement, respect, and recognition from others.

Social Needs

Fundamental human requirements for belonging, love, and affection within interpersonal relationships.

Security Needs

Basic human requirements for safety and security, including physical safety, employment, resources, health, and property.

Fat Cells

Cells that store energy in the form of fat and regulate metabolism.