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

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Definitions:

Scleroderma

A group of autoimmune diseases that cause the skin and connective tissues to harden and tighten.

Melanocytes

Cells located in the basal layer of the epidermis that produce melanin, the pigment responsible for skin color.

Hematocrit

A measurement of the proportion of blood that is made up of red blood cells, usually expressed as a percentage.

Hyperpigmentation

A condition where patches of skin become darker in color than the surrounding skin, due to excess melanin.