The Effect of Contractionary fiScal Policy Is Shown as a

question 131

Multiple Choice

The effect of contractionary fiscal policy is shown as a

• A) rightward shift in the economy's aggregate demand curve.
• B) rightward shift in the economy's aggregate supply curve.
• C) movement along an existing aggregate demand curve.
• D) leftward shift in the economy's aggregate demand curve.

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Definitions:

Probability

The measure of the likelihood that an event will occur, quantified as a number between 0 and 1.

Bullwhip Effect

A phenomenon in supply chains where small fluctuations in demand at the retail level cause progressively larger fluctuations in demand at the wholesale, distributor, and manufacturer levels.

Order Size

The quantity of goods a company purchases or produces in a single order to meet its demand while minimizing costs.

Disaster Risk

The likelihood of loss of life, injury, or destruction and damage from a disaster in a given period.