If fiscal policy implementation causes some crowding out, the ________ shift of the aggregate demand curve will be ________ than it would have been if no crowding out had occurred.

A. leftward; larger
B. rightward; smaller
C. rightward; larger
D. leftward; smaller

Answer: B

Economics

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The short-run aggregate supply curve is likely to shift to the left when there is an increase in

A) the cost of productive resources B) productivity C) the money supply D) the federal budget deficit E) imports

Economics

If the demand for money is Md = 100 +.25Y – 100r and then the increase in money demand rises by 100, the LM curve shifts to the

a. right by 400. b. right by 100. c. left by 200. d. left by 400. e. none of the above.

Economics