A Fiscal Expansion Will

question 22

Multiple Choice

A fiscal expansion will

• A)raise both the price level and real income in the long run.
• B)reduce both the price level and the real income in the short run.
• C)raise real income but leave the price level unaffected in the long run.
• D)raise both the price level and real income in the short run.

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Definitions:

Adopted From Others

The process of taking or accepting ideas, practices, or policies from external sources or individuals.

Goals

Targets or desired outcomes that an individual or group aims to achieve.

Thoughts

refer to mental processes involving reasoning, planning, problem-solving, and abstract thinking, occurring within the mind.

Feelings

Emotional experiences or responses to stimuli, varying in intensity and type.