CIMA Fundamentals of Business Economics BA1 Question # 38 Topic 4 Discussion

CIMA Fundamentals of Business Economics BA1 Question # 38 Topic 4 Discussion

BA1 Exam Topic 4 Question 38 Discussion:
Question #: 38
Topic #: 4

If a government adopted a fiscal policy of cutting its budget deficit, the aggregate demand and supply model shows that the result would be:


A.

a shift in the aggregate demand curve to the right, a fall in output and employment and a rise in the price level


B.

a shift in the aggregate demand curve to the left, a fall in output and employment and a fall in the price level


C.

a shift in the aggregate demand curve to the left, a fall in output and employment and a rise in the price level


D.

a shift in the aggregate demand curve to the right, a rise in output and employment and a rise in the price level


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