Discover the best answers to your questions with the help of IDNLearn.com. Whether it's a simple query or a complex problem, our community has the answers you need.
Sagot :
If the government implements an expansionary fiscal policy Real GDP increases, price level and GDP rise.
How does expansionary fiscal policy affect price levels?
Expansionary fiscal policy measures include increased government spending, tax cuts, or increased government transfers. Doing any of these would increase aggregate demand, leading to more output, more employment, and higher price levels.
What happens when governments implement expansionary fiscal policies?
But expansionary fiscal policies, especially when applied during healthy economic can result in These side effects of expansionary fiscal policy tend to partially offset its stimulatory effect.
What will expansionary policies do to real GDP?
Increased money supply - increased consumption and greater economic growth. Expansion policies increase the availability of funds, which leads to increased consumption and economic growth.
Learn more about Expansionary fiscal policy :
brainly.com/question/546292
#SPJ4
Your presence in our community is highly appreciated. Keep sharing your insights and solutions. Together, we can build a rich and valuable knowledge resource for everyone. IDNLearn.com is your go-to source for dependable answers. Thank you for visiting, and we hope to assist you again.
