Fiscal Policy Is Likely to Fail to Correct Stagflation in an Economy

question 86

Multiple Choice

Fiscal policy is likely to fail to correct stagflation in an economy because:

• A)it affects both aggregate demand and supply,although only aggregate supply needs to be changed.
• B)it affects both the aggregate demand and supply,although only aggregate demand needs to be changed.
• C)it affects aggregate demand only,although aggregate supply needs to changed.
• D)it affects aggregate supply only,although only aggregate demand needs to be changed.
• E)it affects either aggregate demand or aggregate supply,although both need to be changed simultaneously.

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