試題詳解

5. If the government responds to a cost shock, that increased costs, by using expansionary fiscal policy, then
(A) the level of output falls even more than it would have without the policy action.
(B) the economy moves back to the output and price levels that existed before the cost shock.
(C) both output and the price level fails even more than they would have without the policy action.
(D) the price level increases even more than it would have without the policy action.