Fiscal Policies Typically Affect the Short-Run Level of GDP Because

question 27

Multiple Choice

Fiscal policies typically affect the short-run level of GDP because they cause shifts in the ________,but they will not generally have any long-run effects on real GDP unless they affect ________.

• A)AS curve; factor-utilization rates
• B)AS curve; factor supplies or factor productivity
• C)AD curve; factor-utilization rates
• D)AD curve; the unemployment rate
• E)AD curve; the level of potential output

---

Definitions:

Native Populations

Indigenous peoples who were the original inhabitants of a territory before colonization or annexation by foreign powers.

Spanish Empire

A historical empire that, at its height in the 16th and 17th centuries, included territories in Europe, the Americas, Asia, and Africa, known for its extensive conquests and colonial rule.

Peace of Paris

The term commonly refers to the 1783 set of treaties that ended the American Revolutionary War, recognizing American independence.

Economic Centers

Key urban or regional areas that serve as hubs of financial and commercial activity, influencing local and global economies.