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(Figure: Short- and Long-Run Equilibrium) Use Figure: Short- and Long-Run

Question 149

Multiple Choice

(Figure: Short- and Long-Run Equilibrium) Use Figure: Short- and Long-Run Equilibrium. If the economy is in equilibrium at E1, the government might use _____ fiscal policy to shift the aggregate demand curve to the _____.
(Figure: Short- and Long-Run Equilibrium)  Use Figure: Short- and Long-Run Equilibrium. If the economy is in equilibrium at E1, the government might use _____ fiscal policy to shift the aggregate demand curve to the _____.   A) expansionary; right. B) expansionary; right C) expansionary; left. D) expansionary; left E) contractionary; right. F) contractionary; right G) contractionary; left. H) contractionary; left


A) expansionary; right.
B) expansionary; right
C) expansionary; left.
D) expansionary; left
E) contractionary; right.
F) contractionary; right
G) contractionary; left.
H) contractionary; left

Correct Answer:

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