An expansionary fiscal policy is shown as a
A)rightward shift in the economy's aggregate demand curve.
B)movement along an existing aggregate demand curve.
C)leftward shift in the economy's aggregate supply curve.
D)leftward shift in the economy's aggregate demand curve.

Question

Quizplus · Accepted Answer

An expansionary fiscal policy increases government spending or decreases taxes, which boosts overall demand in the economy, causing a rightward shift in the aggregate demand curve.

An Expansionary Fiscal Policy Is Shown as a