The AD curve can be shifted by:
A)both fiscal and monetary policy.
B)neither fiscal nor monetary policy.
C)fiscal policy only.
D)monetary policy only.

Name: The AD curve can be shifted by: A)both fiscal and monetary policy. B)neither fiscal nor monetary policy. C)fiscal policy only. D)monetary policy only.
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Question

Quizplus · Accepted Answer

The AD curve responds to both fiscal policy (such as changes to government spending and taxes)and monetary policy (such as changes to Fed's policy reaction function).

The AD Curve Can Be Shifted By