B reduce govt spending in the short run expansionary fiscal policy usually will

B reduce govt spending in the short run expansionary

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B) reduce govt spending  in the short-run, expansionary fiscal policy usually will A) increase the price level and increase real GDP  contractionary fiscal policy will most likely C) reduce the price level  suppose the econ has a high level of unemployment; this would imply
B) that the econ is operating to the left of the LRAS curve and that govt spending could be increased to reduce unemployment  discretionary fiscal policy is so named because it C) involves specific changes in taxes and govt spending undertaken by Congress and the president  when the govt cuts taxes or increases govt spending D) the AD curve shifts to the right  which of the following conditions describes a recessionary gap? B) the short-run equil level of real GDP is below the long-run level of real GDP  expansionary fiscal policy is used to B) combat recessions  in 2009, Congress passed a bill that involved govt spending increases and tax cuts with the purpose of stimulating the U.S. econ; this policy is an example of C) expansionary fiscal policy  the fiscal policy of the U.S. is A) summarized in the budget of the U.S. federal government  which one of the following is an example of discretionary fiscal policy used to correct a recessionary gap? A) a tax decrease passed into law by Congress  which one of the following is an example of discretionary fiscal policy used to correct an inflationary gap?
A) a tax increase passed into law by Congress  what does research tell us about the impact of Ricardian equivalence effects on the econ? D) Ricardian equivalence effects may exist, but their magnitudes are unclear  the concept that increased govt spending will lead to lower investment and consumer spending is referred to as the B) crowding-out effect  by definition, a direct expenditure offset will occur whenever A) the govt increases spending in an area that competes with the private sector  if the govt began providing free textbooks to college students who would otherwise have bought their books from the private sector, the govt's action would result in B) a direct expenditure offset  if the govt increases spending and there is a complete direct expenditure offset, then A) AD and real GDP will not change  the govt wants to increase its spending by $1 billion to stimulate the econ and is counting on the govt spending multiplier to help; taking into account direct expenditure offset effects, what is its best spending option? A) a new cruise missile for the military  according to the supply-side economics, changes in marginal tax rates will have which of the following effects? D) all of the above -change the incentive to work
-change the incentive to save -change the incentive to invest  one part of the supply-side argument is that B) lower marginal tax rates can increase total tax revenues  the supporters of a proposal to increase marginal taxes on those earning over $200,000 a year say this

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