How Could an Expansionary Fiscal Policy Increase Real GDP and Lower

question 68

Multiple Choice

How could an expansionary fiscal policy increase real GDP and lower the price level?

• A) if aggregate supply decreases more than aggregate demand increases
• B) if aggregate supply increases more than aggregate demand increases
• C) if the aggregate supply increases equals the aggregate demand increase
• D) if aggregate supply decreases more than aggregate demand decreases
• E) if aggregate supply decreases less than aggregate demand decreases

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Definitions:

February

The second month in the Gregorian calendar, recognized for its 28 days in regular years and 29 days during leap years.

Variable Overhead Efficiency Variance

The difference between the actual variable overhead based on hours worked and the standard cost of variable overhead for the actual hours worked.

Variable Overhead Rate Variance

The difference between the actual variable overhead costs incurred and the standard costs expected for the actual production level.

Standard Cost

A financial estimate used to set a cost benchmark for manufacturing products, based on expected direct material, direct labor, and overhead costs.