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Pull the rope to the right policy

Exercise and reference answers

Categories
  1. Expansionary
  2. Contractionary
Questions
  1. Answer
    Expansionary
    Question
    Shifts aggregate demand outward.
  2. Answer
    Contractionary
    Question
    Shifts aggregate demand inward.
  3. Answer
    Expansionary
    Question
    The right response to a recession.
  4. Answer
    Contractionary
    Question
    Used to cool an overheating economy.
  5. Answer
    Expansionary
    Question
    More spending or lower taxes.
  6. Answer
    Contractionary
    Question
    Less spending or higher taxes.
Instructions
Tap the side of the rope that each description belongs to.

Explanation

_Source: OpenStax Principles of Macroeconomics for AP Courses 2e (CC BY 4.0), Ch 16 'Government Budgets and Fiscal Policy'_
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