an economics question the second blank in ( NOT TO BE, TO BE ) Suppose the gover
ID: 2495034 • Letter: A
Question
an economics question
the second blank in ( NOT TO BE, TO BE )
Suppose the government decided to decrease government purchases, but everything else in the economy remained the same. On the following graph, shift the aggregate demand curve (AD), the short-run aggregate supply curve (SRAS), or both to show the intended short-run effect of this fiscal policy on the economy. Tool tip: Click and drag one or both of the curves. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, Just try again and drag it a little farther. Although fiscal policy may theoretically achieve the desired result in an economy, the time it takes for it to be approved and implemented, known as can cause discretionary fiscal policy immediately effective.Explanation / Answer
Although fiscal policy may acheive the desired results in an economy, the time it takes for it to be approved and implemented known as time lag, can cause discretionary fiscal policy not to be immediately effective but in the long run.
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