The Goal of Expansionary fiScal Policy Is to Increase

question 387

Multiple Choice

The goal of expansionary fiscal policy is to increase

• A) the price level.
• B) aggregate supply.
• C) real GDP.
• D) unemployment.

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Definitions:

Price Elasticity

The degree to which demand for a particular item changes in response to price adjustments.

Gasoline Demanded

The total amount of gasoline that consumers are willing to buy at a given price, typically influenced by factors such as price and personal income.

Price Elasticity

The measure of how much the quantity demanded of a good responds to a change in the price of that good.

Consumer Demand

The desire of purchasers, consumers, or buyers for a particular good or service supported by the ability and willingness to pay for it.