Which of the following would be the theoretical outcome of expansionary fiscal policy in the following aggregate demand-aggregate supply model? A) The aggregate demand A D) curve would shift from AD₁ to AD₂. B) The short-run aggregate supply SRA S) curve would shift from SRAS₂ to SRAS₁. C) The short-run aggregate supply SRA S) curve would shift from SRAS₁ to SRAS₂. D) The aggregate demand A D) curve would shift from AD₁ to AD₂ at the same time that the SRAS curve would shift from SRAS₁ to SRAS₂. E) The aggregate demand A D) curve would shift from AD₂ to AD₁.

Question

Quizplus · Accepted Answer

The Answer is E

Which of the Following Would Be the Theoretical Outcome of Expansionary