Ask Question
BusinessBusiness
21 April, 18:33

During a recession, if a government uses an expansionary fiscal policy to increase GDP, the:

A. aggregate supply curve will shift to the right.

B. aggregate supply curve will shift to the left.

C. aggregate demand curve will shift to the left.

D. aggregate demand curve will shift to the right.

+2
Answers (1)
  1. 21 April, 18:58
    0
    The correct answer is option D.

    Explanation:

    Expansionary fiscal policy is used to boost economic activities. It is used in case of a recession in the economy. The main tools of expansionary fiscal policy are an increase in government spending and a decrease in taxes.

    Both of these will cause an increase in disposable income. This will further lead to an increase in the aggregate demand, causing a rightward shift in the aggregate demand curve.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “During a recession, if a government uses an expansionary fiscal policy to increase GDP, the: A. aggregate supply curve will shift to the ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Metlock has been in business several years. At the end of the current year, the unadjusted trial balance shows: Accounts Receivable $300,000 Dr. Sales Revenue 2,321,700 Cr. Allowance for Doubtful Accounts 5,355 Cr.
Answers (1)
Pollution Busters Inc. is considering a purchase of 10 additional carbon sequesters for $120,000 apiece. The sequesters last for only 1 year before becoming saturated. Then the carbon is sold to the government. a.
Answers (1)
What can we expect from the federal reserve bank if it seeks to move the economy in the direction of? long-run macroeconomic? equilibrium?
Answers (1)
Which Public Health Service (PHS) organization is responsible for monitoring organizational compliance with PHS Policy?
Answers (1)
Piper Corporation, which manufactures dog toys, is developing direct labor standards. The basic direct labor rate is $12.00 per hour.
Answers (1)
New Questions in Business
If the contribution margin ratio for france company is 45%, sales were $425,000, and fixed costs were $100,000, what was the income from operations? a. $191,250 b. $233,750 c. $133,750 d. $91,250
Answers (1)
The concept of risk management is based on an assessment of benefits gained compared to the ___:
Answers (1)
The EBIT of a firm is $300, the tax rate is 35%, the depreciation is $20, capital expenditures are $60, and the increase in net working capital is $30. What is the free cash flow to the firm
Answers (1)
In order for the United States to have a treaty with a foreign country the
Answers (2)
Monson sells 29 units for $50 each on December 15. Monson uses a perpetual inventory system. Determine the costs assigned to ending inventory when costs are assigned based on the weighted average method.
Answers (1)
Home » Business » During a recession, if a government uses an expansionary fiscal policy to increase GDP, the: A. aggregate supply curve will shift to the right. B. aggregate supply curve will shift to the left. C. aggregate demand curve will shift to the left. D.
Sign Up Forgot Password?