Which of the Following Statements About Fiscal Policy Is FALSE

question 35

Multiple Choice

Which of the following statements about fiscal policy is FALSE?

• A)Real GDP can be increased above its long-run equilibrium only in the short run.
• B)Real GDP is expanding over time in the long-run.
• C)Government can shift the aggregate demand curve inward by decreasing spending.
• D)Government can shift the aggregate demand curve outward by reducing spending.

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