If Aggregate Demand Shifts Right and the President and Congress

question 23

Multiple Choice

If aggregate demand shifts right and the President and Congress want to use fiscal policy to reverse the change in output,they could

• A)increase government expenditures.If by the time policy has been implemented the economy has moved back to long-run equilibrium,then this policy will raise output above its long-run level.
• B)increase government expenditures.If by the time policy has been implemented the economy has moved back to long-run equilibrium,then this policy will reduce output to below its long-run level.
• C)decrease government expenditures.If by the time policy has been implemented the economy has moved back to long-run equilibrium,then this policy will raise output above its long-run level.
• D)decrease government expenditures.If by the time policy has been implemented the economy has moved back to long-run equilibrium,then this policy will reduce output to below its long-run level.

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Definitions:

Continuous Cost Reduction

An ongoing strategy in business to lower expenses through process, product, or service improvements without compromising quality or performance.

Focused Differentiation

A business strategy where a company targets a specific market segment, offering specialized products or services that uniquely meet the needs of that segment.

Rapid Product Development

A strategy aimed at accelerating the design, creation, and launch of new products to market through streamlined processes.

Mission Statement

A structured overview detailing the goals and principles of a business, entity, or individual.