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AP Macroeconomics
Unit 5 – Long–Run Consequences of Stabilization Policies
Topic 5.1
What is the likely short-term effect of contractionary fiscal policy on real GDP and the price level?
It increases real GDP and decreases the price level
It increases real GDP and the price level
It decreases real GDP and the price level
It decreases real GDP and increases the price level
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AP Macroeconomics - 5.1 Fiscal and Monetary Policy Actions in the Short-Run
Key terms
Contractionary Fiscal Policy
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Resources
Cram Mode
AP Score Calculators
Study Guides
Practice Quizzes
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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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