Answered

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If aggregate output is above potential output, then an appropriate fiscal policy would be to _____, which will shift the _____ curve to the _____. decrease government purchases; AD; right decrease tax rates; AD; right decrease transfer payments; AS; right decrease government purchases; AD; left

Sagot :

Martebi

Fiscal policy often affect the level of overall spending in the economy by changes in taxes and spending. Appropriate fiscal policy would be to decrease government purchases, which will shift the AD curve to the Left.

The aggregate demand curve is known to shifts to the right only as the parts of aggregate demand such as consumption spending, investment spending, government spending, etc. rises.

Fiscal policy is known to affect aggregate demand. It can lead to changes in government spending and taxation.  It also have huge effect on business expansion, net exports, employment, the cost of debt, etc.

Learn more about Fiscal Policy from

https://brainly.com/question/6583917

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