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Refer to the Graph Shown

Question 33

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Refer to the graph shown.Expansionary fiscal policy shifts the aggregate demand curve from: Refer to the graph shown.Expansionary fiscal policy shifts the aggregate demand curve from: A) AD<sub>0</sub> to AD<sub>2</sub> but then back to AD<sub>1</sub> if crowding out occurs. B) AD<sub>0</sub> to AD<sub>2</sub> but then out to AD<sub>3</sub> if crowding out occurs. C) AD<sub>0</sub> to AD<sub>2</sub> whether or not crowding out occurs. D) AD<sub>2</sub> to AD<sub>1</sub> and then from AD<sub>1 </sub>to AD<sub>0</sub> if crowding out occurs.


A) AD0 to AD2 but then back to AD1 if crowding out occurs.
B) AD0 to AD2 but then out to AD3 if crowding out occurs.
C) AD0 to AD2 whether or not crowding out occurs.
D) AD2 to AD1 and then from AD1 to AD0 if crowding out occurs.

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