If the economy starts below full employment, an expansionary fiscal policy will shift the aggregate demand curve from ___ to _, and equilibrium will move from point ___ to

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12-04-2022
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If the economy starts below full employment, an expansionary fiscal policy will shift the aggregate demand curve from ___ to _, and equilibrium will move from point ___ to

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Tundexi Tundexi · Answer 1 · 2022-04-20T11:33:23+02:00

The expansionary fiscal policy will shift the aggregate demand curve from AD0 to AD1 and equilibrium will move from point a to b if the economy starts below full employment.

What is the below full employment?

Its means when an the short-run real gross domestic product is lower than that same long-run potential real gross domestic product.

Hence, the economic situation will elicit a policy of expansionary fiscal which will affect the aggregate demand graph.

Therefore, the aggregate demand curve from AD0 to AD1 and equilibrium will move from point a to b if the economy starts below full employment.

If the economy starts below full employment, an expansionary fiscal policy will shift the aggregate demand curve from _____ to _____, and equilibrium will move from point _____ to

Respuesta :

What is the below full employment?

Otras preguntas

If the economy starts below full employment, an expansionary fiscal policy will shift the aggregate demand curve from ___ to _, and equilibrium will move from point ___ to