In the Short Run,a Contractionary Fiscal Policy Would Cause

question 44

Multiple Choice

In the short run,a contractionary fiscal policy would cause

• A) the AD curve to shift to the right
• B) equilibrium real GDP to decrease and the price level to increase
• C) the AS curve to shift left
• D) the economy to slide along the AD curve
• E) equilibrium GDP and the price level to fall

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Definitions:

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