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Fiscal policy works primarily through:
a) Shifts of the AS curve.
b) Shifts of the AD curve.
c) The improvement of worker skills through subsidized training programs.
d) Shifts of both AD and AS, as a result of changes in the interest rate

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Divya Singh
Divya SinghLv10
20 Oct 2020

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If investment changes because of a change in a factor other than the price level, then the:
 
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B. AD shifts left.
C. Economy moves from one point on a short-run aggregate supply (SRAS) curve to another point on the same curve.
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E. None of the above

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d. shifts the supply curve to the left, increasing the equilibrium price and reducing equilibrium output.

 

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