How Could an Expansionary Fiscal Policy Increase Real GDP and Lower

question 69

Multiple Choice

How could an expansionary fiscal policy increase real GDP and lower the price level?

• A) If aggregate supply decreases more than aggregate demand increases.
• B) If the aggregate supply increase equals the aggregate demand increase.
• C) If aggregate supply decreases more than aggregate demand decreases.
• D) If aggregate supply increases more than aggregate demand increases.
• E) If aggregate supply decreases less than aggregate demand decreases.

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