The plan is expected to
A. shift the AD curve rightward and increase real GDP.
B. shift the AD curve leftward and decrease the recessionary gap.
C. decrease the recessionary gap and decrease the price level.
D. use the autonomous tax multiplier to eliminate the inflationary gap.
Answer:A
The plan is expected to
A. shift the AD curve rightward and increase real GDP. B. shift the AD curve leftward and decrease the recessionary gap. C. decrease the recessionary gap and decrease the price level. D. use the autonomous tax multiplier to eliminate the inflationary gap.