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(Figure: Effects of Policy Shifts) If the Economy Starts Below

Question 74

Multiple Choice

(Figure: Effects of Policy Shifts) If the economy starts below full employment, an expansionary fiscal policy will shift the aggregate demand curve from _____ to _____, and equilibrium will move from point _____ to _____. (Figure: Effects of Policy Shifts)  If the economy starts below full employment, an expansionary fiscal policy will shift the aggregate demand curve from _____ to _____, and equilibrium will move from point _____ to _____.   A)  AD<sub>1</sub>; AD<sub>0</sub>; a; b B)  AD<sub>1</sub>; AD<sub>0</sub>; b; a C)  AD<sub>0</sub>; AD<sub>1</sub>; b; a D)  AD<sub>0</sub>; AD<sub>1</sub>; a; b


A) AD1; AD0; a; b
B) AD1; AD0; b; a
C) AD0; AD1; b; a
D) AD0; AD1; a; b

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