Refer to the Graph Shown

Multiple Choice

Refer to the graph shown. Expansionary fiscal policy is most likely to shift the aggregate demand curve from:

A) AD₀ to AD₂ if crowding out does not occur and from AD₀ to AD₁ if crowding out does occur.
B) AD₀ to AD₂ if crowding out does not occur and from AD₀ to AD₃ if crowding out does occur.
C) AD₂ to AD₀ if crowding out does not occur and from AD₁ to AD₂ if crowding out does occur.
D) AD₂ to AD₀ if crowding out does not occur and from AD₁ to AD₃ if crowding out does occur.