Fiscal Expansion

question 82

Multiple Choice

Fiscal expansion

• A) stimulates aggregate demand and causes output to decline.
• B) decreases aggregate demand and causes output to decline.
• C) stimulates aggregate demand and causes output to rise.
• D) decreases aggregate demand and causes output to rise.
• E) decreases government expenditures.

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Definitions:

Industrial Chemicals

Chemical substances manufactured for use in industrial processes or products, distinct from pharmaceuticals, agricultural chemicals, or food additives.

EPA

The Environmental Protection Agency, a U.S. federal agency responsible for protecting human health and the environment by enforcing regulations based on laws enacted by Congress.

Produced

Refers to goods or services created as a result of a process that involves transforming inputs into outputs.

Imported

Brought into a country from abroad for the purpose of sale or use, referring to goods or services.