The primary goal of fiscal policy is to increase GDP and the primary goal of mon

False. Primary goal of fiscal policy is to increase GDP and that of monetary policy is to achieve a GDP that can be sustainable.

ID: 1211410 • Letter: T

Question

The primary goal of fiscal policy is to increase GDP and the primary goal of monetary policy is to decrease GDP.

True

False

An inflationary gap is the amount by which

A. When savings exceeds investment

B. aggregate demand intersects the short run aggregate supply curve

C. Current output is less than the full employment level of output

D. Current output exceeds the full employment level of output

The real balances, interest rate and foreign exchange rate effect all help explain

A. why the short run aggregate supply curve is upward sloping

B. shifts in the aggregate supply curve

C. Shifts in the aggregate demand curve

D. why the aggregate demand curve is downward sloping

False. Primary goal of fiscal policy is to increase GDP and that of monetary policy is to achieve a GDP that can be sustainable.

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