Tag: aggregate demand

This quiz covers the concepts related to Aggregate Demand and Supply in Macroeconomics.

This quiz aims to assess your understanding of the impact of contractionary fiscal policy on various economic variables. Contractionary fiscal policy refers to government measures that reduce aggregate demand in an economy. It typically involves decreasing government spending, raising taxes, or both. Contractionary fiscal policy is often used to combat inflation or to reduce budget deficits.

Demand-side economics is a macroeconomic theory that focuses on the role of aggregate demand in determining the level of economic activity. It argues that changes in aggregate demand can lead to changes in output, employment, and prices.