Government Anti-Inflationary Fiscal Policy

question 38

Multiple Choice

Government anti-inflationary fiscal policy

• A) is intended to shift the short-run aggregate supply curve to the left.
• B) typically leads to an increase in total real output and a rise in the price level.
• C) leads to a reduction in total real output when the short-run aggregate supply curve is positively sloped.
• D)shifts the aggregate demand curve to the right.
• E)is undertaken when the economy is in the horizontal range of the short-run aggregate supply curve.

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