Use the Following to Answer Questions

Use the following to answer questions .
Exhibit: Fiscal Policy 1
-(Exhibit: Fiscal Policy 1) If discretionary fiscal policy is used to eliminate the gap, policy actions will

A) shift the aggregate demand curve to the right until long-run equilibrium is restored at a price level, P₁ and output level, Y_p.
B) shift the short-run aggregate supply curve to the right until long-run equilibrium is restored at a price level, P₁ and output level, Y_p.
C) shift the aggregate demand curve to the right until long-run equilibrium is restored at a price level, P₂ and output level, Y_p.
D) shift the aggregate demand curve and the short-run aggregate supply curve to the right until long-run equilibrium is restored at a price level corresponding to point d and output level, Y_p.