If aggregate output lies below potential output, then an appropriate fiscal policy would be to increase _____, which will shift the _____ curve to the _____.
A) government purchases; AD; left
B) government purchases; AD; left.
C) transfer payments; AS; right.
D) transfer payments; AS; right
E) tax rates; AD; right.
F) tax rates; AD; right
G) government purchases; AD; right.
H) government purchases; AD; right
Correct Answer:
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