"Demand-Side Fiscal Policy Is Capable of Changing Real GDP

question 89

Multiple Choice

"Demand-side fiscal policy is capable of changing Real GDP." This statement would be most likely to be said by an economist who believes that

• A) the AS curve is vertical.
• B) the AS curve is upward sloping.
• C) complete crowding out exists.
• D) there is little,if any,crowding out.
• E) b and d

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Definitions:

Book-to-market Ratio

A valuation metric comparing a company's book value to its market value.

Market Index

A statistical measure that shows changes in a financial market by tracking the performance of a set of selected stocks.

Explanatory Factors

Variables that are thought to explain changes or variations in a particular variable of interest, often used in statistical models to understand outcomes.

Industrial Production

The total output, often measured in physical units, of factories, mines, and utilities within an economy.