Which of the following is NOT a principal method of financing today?

Taxes and government spending that affect fiscal policy without specific action from policymakers are called:

A. automatic stabilizers. B. discretionary fiscal policy. C. expansionary fiscal policy. D. contractionary fiscal policy.

Refer to the graph above. When output increases from Q 1 and the price level decreases from P 1, this change will:

a. Be caused by a shift in the aggregate supply curve from AS1 to AS2 b. Result in a movement along the aggregate demand curve from e3 to e1 c. Result in a movement along the aggregate demand curve from e1 to e2 d. Be caused by a shift in the aggregate supply curve from AS1 to AS3