When the Macro Equilibrium Is Above Full Employment,fiscal Policy Should

question 127

Multiple Choice

When the macro equilibrium is above full employment,fiscal policy should be used to shift aggregate demand by the amount of

• A)The difference between saving and investment.
• B)The difference between desired saving and desired investment.
• C)The AD excess,which also allows for price level changes.
• D)None of the choices are correct.

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