(Figure: Fiscal Policy Choices) Use Figure: Fiscal Policy Choices. It would be appropriate to use contractionary fiscal policy to shift aggregate demand in _____ from _____.
A) panel (b) ; AD1 to AD2.
B) panel (b) ; AD1 to AD2
C) panel (a) ; AD2 to AD1.
D) panel (a) ; AD2 to AD1
E) panel (a) ; AD1 to AD2.
F) panel (a) ; AD1 to AD2
G) panel (b) ; AD2 to AD1.
H) panel (b) ; AD2 to AD1
Correct Answer:
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Q148: (Figure: Fiscal Policy Choices) Use Figure: Fiscal
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Q158: (Figure: Short- and Long-Run Equilibrium II) Use
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