Use the Following to Answer Questions

Multiple Choice

Use the following to answer questions:
-(Figure: Short- and Long-Run Equilibrium) Refer to Figure: Short- and Long-Run Equilibrium. If the economy is at equilibrium at E₁, the government should use _____ fiscal policy to shift the aggregate demand curve to the _____.

A) expansionary; right
B) expansionary; left
C) contractionary; right
D) contractionary; left