If There Is an Inflationary Gap in the Economy, Discretionary

question 84

Multiple Choice

If there is an inflationary gap in the economy, discretionary fiscal policy would likely involve
An action to

• A) shift the aggregate demand curve to the right.
• B) shift the aggregate demand curve to the left.
• C) shift both the aggregate demand curve and aggregate supply curve to the right.
• D) shift both the aggregate demand curve and aggregate supply curve to the left.

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Definitions:

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