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:

Life Expectancy

The average period that an organism, especially a human, is expected to live based on demographic factors.

Mean

The arithmetic average of a set of numbers, found by dividing the sum of these numbers by the count of the numbers in the set.

Function

A relationship between a set of inputs and a set of permissible outputs, where each input is related to exactly one output.

Probability

The measure of the likelihood that an event will occur.