The caption under a cartoon in the text reads "When the economy is flat on its back,it may need both monetary and fiscal stimulus." Such a policy action will shift the aggregate
A)Demand curve to the right.
B)Demand curve to the left.
C)Supply curve to the right.

Question

Quizplus · Accepted Answer

Both monetary and fiscal stimulus involve increasing government spending or injecting money into the economy, which increases aggregate demand and shifts the AD curve to the right. This leads to an increase in both output and prices.

The Caption Under a Cartoon in the Text Reads "When