Mainstream Macroeconomics Would Suggest That fiScal Policy

question 124

Multiple Choice

Mainstream macroeconomics would suggest that fiscal policy

• A) affects GDP and the price level through changes in aggregate supply.
• B) changes aggregate demand and GDP through the multiplier process.
• C) has no effect unless the fiscal policy is accompanied by changes in the money supply.
• D) is relatively ineffective because the outcomes are anticipated and offset.