Expansionary Fiscal Policy Shifts the Aggregate Demand Curve to the _____

question 105

Multiple Choice

Expansionary fiscal policy shifts the aggregate demand curve to the _____ and is used to close a(n) _____ gap.

• A) right; inflationary
• B) right; recessionary
• C) left; inflationary
• D) left; recessionary

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Definitions:

Unrelated Diversification

A corporate strategy where a company expands into areas or industries that are not related to its current business or products.

New Businesses

Enterprises that have been recently established and are in the early stages of operation.

Concentration Strategy

A strategy in which a company focuses its resources on entering or expanding in a narrow market or industry segment.

Expansion

The process of increasing the size, scope, or scale of operations of a business or organization, often into new markets or areas.