Expansionary Aggregate Demand-Oriented Fiscal Policy Leads, Ceteris Paribus, to

question 23

Multiple Choice

Expansionary aggregate demand-oriented fiscal policy leads, ceteris paribus, to

• A) a short-run fall in both income and the price level.
• B) a short-run rise in income and a fall in the price level.
• C) no change in the long-run equilibrium level of income and to an increase in the price Level.
• D) both an increase in the long-run equilibrium level of income and an increase in the Price level.

---

Definitions:

Family Therapy

A form of psychotherapy that aims to address psychological problems and promote health within the context of the family unit.

Systems Approach

A holistic way of solving problems by viewing systems as part of a larger context.

Therapeutic Goal

A desired outcome or objective aimed to be achieved through therapy or treatment in the healthcare field.

Agoraphobia

An anxiety disorder characterized by an intense fear of being in situations where escape might be difficult or help might not be available, often leading to avoidance of places like open spaces or crowded areas.