Using the Aggregate Demand and Supply Model, Expansionary Fiscal Policy

question 33

True/False

Using the aggregate demand and supply model, expansionary fiscal policy will not affect the price level, but will restore full-employment GDP.

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Definitions:

Thrustline

The imaginary line in a vehicle that represents the direction of the force that is applied to propel the vehicle forward.

Dog-tracking

A condition where a vehicle's rear alignment is off-center compared to the front, causing it to move diagonally down the road.

Perpendicular

At right angles to.

Light Beam Alignment

Suspension/chassis alignment instruments that use projected light beams and templates.