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-**What type of fiscal policy would shift aggregate demand from AD₃ to AD₂?

Name: Use the graph to answer questions -**What type of fiscal policy would shift aggregate demand from AD 3 to AD 2 ?
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Use the graph to answer questions -**What type of fiscal policy would shift aggregate demand from AD₃ to AD₂?

Quizplus · Accepted Answer

To shift aggregate demand from AD₃ to AD₂, the economy needs to decrease its overall spending. This can be achieved through contractionary fiscal policy, which includes decreasing government spending, increasing taxes, or a combination of both.

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