Introduction to Economics 2 Deneme Sınavı Sorusu #349916

Which of the following shows the effect of the implementation of contractionary fiscal policy in the economy?


G↓ →  AD↓

 

G↓ →  AD↑

 

T↑ →  AD↑

 

T↓ →  AD↓

G↑ →  AD↓


Yanıt Açıklaması:

Since contractionary fiscal policy means decreasing government expenditures and increasing taxes, AD curve has to shift downward as indicated by the choice A.

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