If the economy is in long run economic equilibrium, at potential GDP, and full employment has been reached as well, if there is an outward shift in aggregate demand, we can expect damaging inflation to start to occur and the government to seek contractionary fiscal and monetary options. True or False
If the economy is in long run economic equilibrium, at potential GDP, and full employment has been reached as well, if there is an outward shift in aggregate demand, we can expect damaging inflation to start to occur and the government to seek contractionary fiscal and monetary options. True or False
Chapter15: Fiscal Policy
Section: Chapter Questions
Problem 5SQ
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If the economy is in long run economic equilibrium, at potential
True or False
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