If Fiscal Policy Is Used to Close an Expansionary Gap,the

question 93

Multiple Choice

If fiscal policy is used to close an expansionary gap,the _____.

• A)short-run aggregate supply curve shifts leftward and the price level falls
• B)short-run aggregate supply curve shifts rightward and the price level increases
• C)short-run aggregate supply curve shifts rightward and the price level falls
• D)aggregate demand curve shifts leftward and the price level falls
• E)aggregate demand curve shifts rightward and the price level falls

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Definitions:

Debit Balance

A situation in accounting where the sum of debits in an account exceeds the sum of credits, often indicating the extent of assets or expenses.

Closing Entries

To transition balances from temporary to permanent accounts, journal entries are executed at the end of the accounting period.

Adjusted Trial Balance

An inventory of accounts and respective balances post-adjustment actions, serving the purpose of crafting financial statements.

Adjusted Trial Balance

A statement listing all accounts and their balances after adjusting entries have been made, used to verify the balance of debits and credits.