suppose output exceeds potential output and contractionary fiscal policy is enacted. according to the as/ad model, in the long run, this fiscal policy will produce: multiple choice a lower output level and a lower price level than would have occurred if no action were taken. a lower price level than would otherwise have occurred if no action were taken. a lower output level than would otherwise have occurred if no action were taken. neither a lower price level nor a lower output level than would otherwise have occurred if no action were taken.