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Economics Mcqs
Q
Suppose a wave of investor and consumer optimisms has increased spending so that the current level of input exceeds the long-run natural rate If policy makers choose to engage in activist stabilization policy they should ?
AA. Decrease government spending which the shifts the aggregate demand curve to the left
BB. Decrease taxes, which shifts the aggregate demand curve to the right
CC. Decrease taxes, which shifts the aggregate demand curve to the left
DD. Decrease government spending which shifts the aggregate demand curve to the right
Correct Answer:
A. A. Decrease government spending which the shifts the aggregate demand curve to the left