# Suppose a wave of investor and consumer optimisms has increased spending so that the current level of input exceeds the long-run natural rate If policy makers choose to engage in activist stabilization policy they should ? with Answer - Economics Mcqs | TestPrep

> Solved MCQ: Suppose a wave of investor and consumer optimisms has increased spending so that the current level of input exceeds the long-run natural rate If policy makers choose to engage in activist stabilization policy they should ? Correct Answer: A. decrease government spending Which the shifts the aggregate demand curve to the left. Verified answer explanation for FPSC, PPSC, MDCAT, NTS, and CSS competitive exam preparation.

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# Suppose a wave of investor and consumer optimisms has increased spending so that the current level of input exceeds the long-run natural rate If policy makers choose to engage in activist stabilization policy they should ?

Direct Answer & Quick Reference

The correct option is **A. decrease government spending Which the shifts the aggregate demand curve to the left**.

A. decrease government spending Which the shifts the aggregate demand curve to the left **(Correct Answer)**

B. decrease taxes, which shifts the aggregate demand curve to the right

C. decrease taxes, which shifts the aggregate demand curve to the left

D. decrease government spending which shifts the aggregate demand curve to the right

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Verified Key: A. decrease government spending Which the shifts the aggregate demand curve to the left
Solved by 3,187+ students

Verified against official examination board answer keys and standard curriculum textbooks.

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