Graphically,which of the Following Will Be the Result of Counter-Cyclical

question 64

Multiple Choice

Graphically,which of the following will be the result of counter-cyclical fiscal policy?

• A)Only the AS curve will shift.
• B)Both the AS and the potential GDP curves will shift.
• C)There will be a movement along the AS curve.
• D)There will be a movement along both the AS and potential GDP curves.

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Definitions:

Units

Basic quantities or measures adopted to quantify and represent variables in quantitative analyses, such as units of measurement in physics or economic units in economics.

Profit-Maximizing

The process or strategy by which a firm determines the price and output level that returns the greatest profit.

Loss-Minimizing

A strategy aimed at reducing the negative impact or minimizing the losses in a business operation or an investment.

Quantity

The amount or number of a material or immaterial good or service.