As a Global Recession Began in Late 2008, the Governments

Multiple Choice

As a global recession began in late 2008, the governments of all major economies searched for policy responses to dampen the effects of the recession. In general, governments were aiming to

A) shift the AD curve to the left by decreasing tax rates.
B) shift the AD curve to the right through large increases in government spending.
C) increase potential GDP.
D) shift the AS curve to the right through large increases in government spending.
E) shift the AS curve to the left by increasing wage rates.