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-(Figure: Short-Run Equilibrium) Refer to Figure: Short-Run Equilibrium.If the economy is at equilibrium at Y1 and P1,the government should use the _____ fiscal policy to shift the aggregate demand curve to the _____.
A) expansionary;right
B) expansionary;left
C) contractionary;right
D) contractionary;left
Correct Answer:
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Q24: Suppose that the economy is in an
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Q36: Expansionary fiscal policy:
A) increases long-run aggregate supply.
B)
Q39: If overall spending declines and thus the
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