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AP Macroeconomics
Unit 5 – Long–Run Consequences of Stabilization Policies
Topic 5.1
In the short run, how does contractionary fiscal policy affect aggregate demand and the price level?
It decreases aggregate demand and increases the price level
It increases aggregate demand and the price level
It increases aggregate demand and decreases the price level
It decreases aggregate demand and the price level
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AP Macroeconomics - 5.1 Fiscal and Monetary Policy Actions in the Short-Run
Key terms
Aggregate demand
Contractionary Fiscal Policy
Price level
Short run
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About Fiveable
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Resources
Cram Mode
AP Score Calculators
Study Guides
Practice Quizzes
Glossary
Crisis Text Line
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© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.
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