Figure: Fiscal Policy Options Price level Reference: Ref 13-8 LRAS SRAS AD Real GDP AD AD (Figure: Fiscal Policy Options) Look at the figure Fiscal Policy Options. If the aggregate demand curve is AD: the economy is in long-run equilibrium. the economy is experiencing an inflationary gap. an expansionary fiscal policy may be warranted 4 a contractionary fiscal policy may be warranted.

Figure: Fiscal Policy Options Price level Reference: Ref 13-8 LRAS SRAS AD Real GDP AD AD (Figure: Fiscal Policy Options) Look at the figure Fiscal Policy Options. If the aggregate demand curve is AD: the economy is in long-run equilibrium. the economy is experiencing an inflationary gap. an expansionary fiscal policy may be warranted 4 a contractionary fiscal policy may be warranted.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter24: Fiscal Policy

Section: Chapter Questions

Problem 5P

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(Figure: Fiscal Policy Options) Use Figure: Fiscal Policy Options. If the aggregate demand curve is AD': Price level LRAS SRAS AD" AD
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