Use the following to answer questions .
Exhibit: Fiscal Policy 2 
-(Exhibit: Fiscal Policy 2) If discretionary fiscal policy is used to eliminate the gap, policy actions will
A) shift the aggregate demand curve to the left until long-run equilibrium is restored at a price level, Pj and output level, Yp.
B) shift the aggregate demand curve and the short-run aggregate supply curve to the left until long-run equilibrium is restored at a price level Pk and output level, Yp.
C) shift the aggregate demand curve to the left until long-run equilibrium is restored at a price level, Pr and output level, Yp.
D) shift the short-run aggregate supply curve to the left until long-run equilibrium is restored at a price level, Pr and output level, Yp.
Correct Answer:
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