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22 Oct 2020

The effect of an expansionary fiscal policy on increasing demand is partially set by lower aggregate demand due to

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Macroeconomics
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Discretionary fiscal policy
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Vaishali Yadav
Vaishali YadavLv10
22 Oct 2020

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Related questions

An expansionary fiscal policy may address the recessionary effects of a decline in aggregate demand by:

    1. Increasing tax rates to stimulate aggregate demand

    2. Decreasing tax rates to stimulate aggregate supply

    3. Increasing government purchases to stimulate aggregate demand

    4. Increasing money supply  to stimulate aggregate supply

When inflation begins to climb to unacceptable levels in the economy, the government should:
A. use contractionary fiscal policy to shift aggregate demand to the left.
B. use expansionary fiscal policy to shift aggregate demand to the right.
C. use contractionary fiscal policy to shift aggregate demand to the right.
D. use expansionary fiscal policy to shift aggregate demand to the left.

When inflation begins to climb to unacceptable levels in the economy, the government should

a) use contractionary fiscal policy to shift aggregate demand to the right.

b) use expansionary fiscal policy to shift aggregate demand to the right.

c) use expansionary fiscal policy to shift aggregate demand to the left.

d) use contractionary fiscal policy to shift aggregate demand to the left.

Ā 

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