55)If the real GDP and Price level both decreased, the following must have occurred: Select one: a. Expansionary fiscal policy b. Contractionary fiscal policy c. Increase in capital d. Increase in labor supply e. None of the above

55)If the real GDP and Price level both decreased, the following must have occurred: Select one: a. Expansionary fiscal policy b. Contractionary fiscal policy c. Increase in capital d. Increase in labor supply e. None of the above

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter24: Fiscal Policy

Section: Chapter Questions

Problem 1P

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Concept explainers

Fiscal Policy and Money Market

Fiscal policy is one of the important tools that is used by the government to control inflation or aggregate demand in the economy. Under this policy, there are two rules which are used by the government, one is the expenditure of the government and the other is the taxation or income of the government which it collects from the public.

Question

55)If the real GDP and Price level both decreased, the following must have occurred:

Select one:

a. Expansionary fiscal policy

b. Contractionary fiscal policy

c. Increase in capital

d. Increase in labor supply

e. None of the above

Definition Video Definition Overall monetary value of all the complete or final services and goods that a country can produce within its domestic boundaries in a specific period. Video

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