Multiple Choice
Use the following to answer questions:
Figure: Inflationary and Recessionary Gaps
-(Figure: Inflationary and Recessionary Gaps) Refer to Figure: Inflationary and Recessionary Gaps. In panel (a) , an expansionary policy designed to move the economy from Y1 to Yp would attempt to shift the:
A) aggregate demand curve to the left by increasing aggregate demand.
B) aggregate demand curve to the right by increasing aggregate demand.
C) SRAS curve to the left.
D) LRAS curve to the left.
Correct Answer:

Verified
Correct Answer:
Verified
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