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Use the Following to Answer Questions

Question 62

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Use the following to answer questions .
Exhibit: Economic Growth, AD and AS Analysis Use the following to answer questions . Exhibit: Economic Growth, AD and AS Analysis -(Exhibit: Economic Growth, AD and AS Analysis) Assume that the economy is initially in long-run equilibrium. Suppose the federal government initiates a tax program that stimulates firms to increase their investment and this leads to economic growth. This policy might, in the short run, result in A) a leftward shift of the aggregate demand and the short-run aggregate supply curve and in the long run, a rightward shift of the long-run aggregate supply curve. B) a rightward shift of the aggregate demand curve and in the long run, a rightward shift of the long-run aggregate supply and the short-run aggregate supply curves. C) a rightward shift of the short-run aggregate supply curve and in the long run, a rightward shift of the long-run aggregate supply curve. D) a leftward shift of the aggregate demand curve and in the long run, a rightward shift of the long-run aggregate supply and the short-run aggregate supply curves.
-(Exhibit: Economic Growth, AD and AS Analysis) Assume that the economy is initially in long-run equilibrium. Suppose the federal government initiates a tax program that stimulates firms to increase their investment and this leads to economic growth. This policy might, in the short run, result in


A) a leftward shift of the aggregate demand and the short-run aggregate supply curve and in the long run, a rightward shift of the long-run aggregate supply curve.
B) a rightward shift of the aggregate demand curve and in the long run, a rightward shift of the long-run aggregate supply and the short-run aggregate supply curves.
C) a rightward shift of the short-run aggregate supply curve and in the long run, a rightward shift of the long-run aggregate supply curve.
D) a leftward shift of the aggregate demand curve and in the long run, a rightward shift of the long-run aggregate supply and the short-run aggregate supply curves.

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