Use the following to answer questions:
-(Figure: Short-Run Equilibrium) Refer to Figure: Short-Run Equilibrium. If the economy is at equilibrium at Y₁ and P₁, the government should use _____ fiscal policy to shift the aggregate demand curve to the _____.

Question

Use the following to answer questions:

-(Figure: Short-Run Equilibrium) Refer to Figure: Short-Run Equilibrium. If the economy is at equilibrium at Y₁ and P₁, the government should use _____ fiscal policy to shift the aggregate demand curve to the _____.

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The Answer of Use the following to answer questions: -(Figure: Short-Run Equilibrium) Refer to Figure: Short-Run Equilibrium. If the economy is at equilibrium at Y₁ and P₁, the government should use _____ fiscal policy to shift the aggregate demand curve to the _____. A) expansionary; right B) expansionary; left C) contractionary; right D) contractionary; left

Use the Following to Answer Questions