Asked by
Augusto Virgillito
on Dec 17, 2024Verified
Policymakers who control monetary and fiscal policy and want to offset the effects on output of an economic contraction caused by a shift in aggregate supply could use policy to shift
A) aggregate supply to the right.
B) aggregate supply to the left.
C) aggregate demand to the right.
D) aggregate demand to the left.
Economic Contraction
A decline in national output as measured by GDP, often marked by a decrease in spending, investment, and general economic activity.
Aggregate Supply
The total supply of goods and services that firms in an economy are willing and able to sell at a given overall price level in a given time period.
Aggregate Demand
The total demand for all goods and services within a particular market or economy at a given overall price level and in a given period.
- Capability to evaluate the impact of fiscal and monetary policy on economic conditions.
- Understanding the impacts of external disruptions and policy measures on economic output and price levels.
Verified Answer
EE
Learning Objectives
- Capability to evaluate the impact of fiscal and monetary policy on economic conditions.
- Understanding the impacts of external disruptions and policy measures on economic output and price levels.