Expansionary fiscal policy will
A)shift the aggregate demand curve to the left.
B)shift the aggregate demand curve to the right.
C)not shift the aggregate demand curve.
D)shift the short-run aggregate supply curve to the left.

Question

Quizplus · Accepted Answer

Expansionary fiscal policy involves increasing government spending or decreasing taxes, which leads to an increase in aggregate demand. This shift will shift the aggregate demand curve to the right.

Expansionary Fiscal Policy Will