ionary aggregate demand oriented fiscal policy leads, ceteris paribus, to a. a short run fall in both income and the price level b. a short run rise in income and a fall in the price level c. no change in the long run equilibrium level of income and to an increase in the price level d. both an increase in the long run equilibrium level of income and an increase in the price level.
ionary aggregate demand oriented fiscal policy leads, ceteris paribus, to a. a short run fall in both income and the price level b. a short run rise in income and a fall in the price level c. no change in the long run equilibrium level of income and to an increase in the price level d. both an increase in the long run equilibrium level of income and an increase in the price level.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
PQ 15. assuming full employment
Expansionary aggregate demand oriented fiscal policy leads, ceteris paribus, to
a. a short run fall in both income and the price level
b. a short run rise in income and a fall in the price level
c. no change in the long run equilibrium level of income and to an increase in the price level
d. both an increase in the long run equilibrium level of income and an increase in the price level.
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