When inflation begins to climb to unacceptable levels in the economy, the government should:
A. use contractionary fiscal policy to shift aggregate demand to the right.
B. use contractionary fiscal policy to shift aggregate demand to the left.
C. use expansionary fiscal policy to shift aggregate demand to the right.
D. use expansionary fiscal policy to shift aggregate demand to the left.
Answer:A
When inflation begins to climb to unacceptable levels in the economy, the government should:
A. use contractionary fiscal policy to shift aggregate demand to the right. B. use contractionary fiscal policy to shift aggregate demand to the left. C. use expansionary fiscal policy to shift aggregate demand to the right. D. use expansionary fiscal policy to shift aggregate demand to the left.
Explanation: Type: Multiple Choice