Consider the basic AD/AS model, and suppose there is a positive output gap. If a contractionary fiscal policy is pursued and the AS curve shifts rightward unexpectedly, thefiscal policy may bepotential GDP.and real GDP mayA. too strong; fall belowB. too strong; stay aboveC. too weak; fall belowD. too weak, stay aboveO E. appropriate; equal

AD/AS is a widely used macroeconomic model to determine short-run economic changes. This model is…

Consider the basic AD/AS model, and suppose there is a positive output gap. If a contractionary fiscal policy is pursued and the AS curve shifts rightward unexpectedly, the potential GDP. fiscal policy may be. and real GDP may OA. too strong; fall below B. too strong; stay above C. too weak; fall below D. too weak; stay above O E. appropriate; equal

Consider the basic AD/AS model, and suppose there is a positive output gap. If a contractionary fiscal policy is pursued and the AS curve shifts rightward unexpectedly, the potential GDP. fiscal policy may be. and real GDP may OA. too strong; fall below B. too strong; stay above C. too weak; fall below D. too weak; stay above O E. appropriate; equal

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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indentified Qe but not the rest
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