Suppose the government decides to pursue an expansionary fiscal policy. Within the AD-AS framework, what will be the impact on the economy?
1.Aggregate supply in the economy will decrease at various price levels.
2.Aggregate demand in the economy will decrease at various price levels.
3.Total production and employment will increase, while inflation decrease.
4.Real GDP, the general level of prices and employment will increase.
1
Expert's answer
2020-04-26T19:01:59-0400
4) Real GDP, the general level of prices and employment will increase.
Numbers and figures are an essential part of our world, necessary for almost everything we do every day. As important…
APPROVED BY CLIENTS
"assignmentexpert.com" is professional group of people in Math subjects! They did assignments in very high level of mathematical modelling in the best quality. Thanks a lot
Comments
Leave a comment