Answer to Question #80790 in Macroeconomics for AYANDA

Question #80790

Which of the following statements regarding the AD-AS model is/are correct?
a) An expansionary fiscal policy occurs when either consumption spending, or government spending are increased.
b) A contractionary monetary policy occurs when there is a decrease in interest rates, ceteris paribus
c) In the AD-AS model, demand management policies can be used to influence aggregate demand and aggregate supply.

1) All statements are correct
2) b
3) c
4) a and b
5) a and c

Expert's answer

5) a and c