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expansionary fiscal policy conducted in an economy at full employment will have which combination of effects in the short run

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Answer:

An increase in real output and a little increase in nominal output.

Step-by-step explanation:

Expansionary fiscal policy can be as activities that are been performed government to expands the supply of money in the economy. Such activities could be tax cuts, rebate as well as

transfer payments, government increase in discretionary spending, It should be noted that the expansionary fiscal policy conducted in an economy at full employment will have combination of

✓increase in real output

✓little increase in nominal output.

effects in the short run.

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