Thank you i appreciate your help!

Post by **answerhappygod** » Mon Apr 18, 2022 9:24 am

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LRAS Price level SRAS P3 с P A X P2 B AD1 AD Ye. Y Real GDP per year Refer to the above graph. The economy is initially at output level Y1. If discretionary fiscal policy is used to eliminate the output gap, policy actions will
shift the aggregate demand curve to the right until long-run equilibrium is restored at a price level P3 and output D level Yp: B shift the aggregate demand curve to the left until long-run equilibrium is restored at a price level P2 and output level Yp. С shift the short-run aggregate supply curve to the left until long-run equilibrium is restored at a price level P2 and output level Yp: D shift the aggregate demand curve and the short-run aggregate supply curve to the right until long-run equilibrium is restored at a price level P2 and output level Yp.
Examples of fiscal policy instruments include which of the following? (Select all that apply.) Cut income taxes Raise unemployment insurance benefits Reduce interest rates Impose a price ceiling on corn prices