What Does Fiscal Policy Primarily Affect in the Long Run

question 96

Multiple Choice

What does fiscal policy primarily affect in the long run and the short run, respectively?

• A)aggregate demand in the long run; aggregate supply in the short run
• B)aggregate supply in the long run; saving, investment, and growth in the short run
• C)saving, investment, and growth in the long run; aggregate demand in the short run
• D)saving, investment, and growth in the long run; aggregate supply in the short run

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