Use the following to answer questions:
-(Figure: Fiscal Policy Options) Refer to Figure: Fiscal Policy Options. If the aggregate demand curve is AD:
A) a contractionary fiscal policy may be warranted.
B) an expansionary fiscal policy may be warranted.
C) no change in discretionary fiscal policy is warranted.
D) the economy is in an inflationary gap.

Question

Use the following to answer questions: 
-(Figure: Fiscal Policy Options) Refer to Figure: Fiscal Policy Options. If the aggregate demand curve is AD:
A) a contractionary fiscal policy may be warranted. 
B) an expansionary fiscal policy may be warranted. 
C) no change in discretionary fiscal policy is warranted. 
D) the economy is in an inflationary gap.

Quizplus · Accepted Answer

The Answer of Use the following to answer questions: 
-(Figure: Fiscal Policy Options) Refer to Figure: Fiscal Policy Options. If the aggregate demand curve is AD:
A) a contractionary fiscal policy may be warranted. 
B) an expansionary fiscal policy may be warranted. 
C) no change in discretionary fiscal policy is warranted. 
D) the economy is in an inflationary gap.

Use the Following to Answer Questions