Use the following to answer questions:
-(Figure: Short- and Long-Run Equilibrium II) Refer to Figure: Short- and Long-Run Equilibrium II.If the economy is at equilibrium at E1,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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