If There Is a Recessionary Gap, Discretionary Fiscal Policy Would

question 23

Multiple Choice

If there is a recessionary gap, discretionary fiscal policy would likely include action to:

• A) shift aggregate demand to the right.
• B) shift aggregate demand to the left.
• C) leave aggregate demand alone and shift short-run aggregate supply to the left.
• D) shift aggregate demand to the right and shift short-run aggregate supply to the left.

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