If aggregate demand shifts left and the President and Congress want to use fiscal policy to reverse the change in output, they could O increase government expenditures. If by the time policy has been implemented the economy has moved back to long-run equilibrium, then this policy will raise output above its long-run level. O decrease government expenditures. If by the time policy has been implemented the economy has moved back to long-run equilibrium, then this policy will reduce output to below its long-run level. O increase government expenditures. If by the time policy has been implemented the economy has moved back to long-run equilibrium, then this policy will reduce output to below its long-run level. O decrease government expenditures. If by the time policy has been implemented the economy has moved back to long-run equilibrium, then this policy will raise output above its long-run level.
If aggregate demand shifts left and the President and Congress want to use fiscal policy to reverse the change in output, they could O increase government expenditures. If by the time policy has been implemented the economy has moved back to long-run equilibrium, then this policy will raise output above its long-run level. O decrease government expenditures. If by the time policy has been implemented the economy has moved back to long-run equilibrium, then this policy will reduce output to below its long-run level. O increase government expenditures. If by the time policy has been implemented the economy has moved back to long-run equilibrium, then this policy will reduce output to below its long-run level. O decrease government expenditures. If by the time policy has been implemented the economy has moved back to long-run equilibrium, then this policy will raise output above its long-run level.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Solve the attachment.
![If aggregate demand shifts left and the President and Congress want to use fiscal policy to
reverse the change in output, they could
O increase government expenditures. If by the time policy has been implemented the
economy has moved back to long-run equilibrium, then this policy will raise output above
its long-run level.
O decrease government expenditures. If by the time policy has been implemented the
economy has moved back to long-run equilibrium, then this policy will reduce output to
below its long-run level.
O increase government expenditures. If by the time policy has been implemented the
economy has moved back to long-run equilibrium, then this policy will reduce output to
below its long-run level.
O decrease government expenditures. If by the time policy has been implemented the
economy has moved back to long-run equilibrium, then this policy will raise output above
its long-run level.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb64c6d58-4928-49f7-82ff-40f65ebe3fb4%2F0c0bbf54-fb10-4a19-8a3b-1f0054ca85cf%2F8nnxht_processed.png&w=3840&q=75)
Transcribed Image Text:If aggregate demand shifts left and the President and Congress want to use fiscal policy to
reverse the change in output, they could
O increase government expenditures. If by the time policy has been implemented the
economy has moved back to long-run equilibrium, then this policy will raise output above
its long-run level.
O decrease government expenditures. If by the time policy has been implemented the
economy has moved back to long-run equilibrium, then this policy will reduce output to
below its long-run level.
O increase government expenditures. If by the time policy has been implemented the
economy has moved back to long-run equilibrium, then this policy will reduce output to
below its long-run level.
O decrease government expenditures. If by the time policy has been implemented the
economy has moved back to long-run equilibrium, then this policy will raise output above
its long-run level.
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