Refer to the graph shown. Expansionary fiscal policy is most likely to shift the aggregate demand curve from: A)AD₀ to AD₂ if crowding out does not occur and from AD₀ to AD₁ if crowding out does occur. B)AD₀ to AD₂ if crowding out does not occur and from AD₀ to AD₃ if crowding out does occur. C)AD₂ to AD₀ if crowding out does not occur and from AD₁ to AD₂ if crowding out does occur. D)AD₂ to AD₀ if crowding out does not occur and from AD₁ to AD₃ if crowding out does occur.

Question

Quizplus · Accepted Answer

The Answer of Refer to the graph shown. Expansionary fiscal policy is most likely to shift the aggregate demand curve from: A)AD₀ to AD₂ if crowding out does not occur and from AD₀ to AD₁ if crowding out does occur. B)AD₀ to AD₂ if crowding out does not occur and from AD₀ to AD₃ if crowding out does occur. C)AD₂ to AD₀ if crowding out does not occur and from AD₁ to AD₂ if crowding out does occur. D)AD₂ to AD₀ if crowding out does not occur and from AD₁ to AD₃ if crowding out does occur.

Refer to the Graph Shown