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