In the Long Run, Fiscal Policy Primarily Affects

question 431

Multiple Choice

In the long run, fiscal policy primarily affects

• A) aggregate demand. In the short run, it affects primarily aggregate supply.
• B) aggregate supply. In the short run, it affects primarily saving, investment, and growth.
• C) saving, investment, and growth. In the short run, it affects primarily aggregate demand.
• D) saving, investment, and growth. In the short run, it affects primarily aggregate supply.

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Definitions:

Generosity

The quality of being kind, understanding, and not selfish; the willingness to give or share unselfishly.

Peacefulness

The state of being calm, tranquil, and free from conflict or disturbance.

Traditionals

Traditionals, often referred to as Traditionalists, are individuals or groups that adhere strictly to established practices and resist change.

Rules

Guidelines or principles that govern behavior and procedures within various contexts and organizations.