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.

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Definitions:

Radial

Relating to, or situated near the radius or forearm; in a broader sense, spreading out in all directions from a common center.

Ulnar

Pertaining to the ulna, one of the two long bones in the forearm, or related to areas supplied by the ulnar nerve.

Brachiocephalic Artery

The brachiocephalic artery is a major blood vessel arising from the aortic arch that supplies blood to the right arm and the head and neck.

Left Common Carotid

A major artery in the neck that supplies blood to the head, neck, and brain.