Multiple Choice
Use the figure below to answer the following question(s) . Figure 11-2
Refer to Figure 11-2. If an economy operates in the short run at point a, Keynesian analysis indicates that restrictive fiscal policy will
A) increase AD and move the economy toward point c.
B) decrease AD and move the economy toward point b.
C) increase SRAS and move the economy toward point b.
D) decrease SRAS and move the economy toward point c.
Correct Answer:
Verified
Correct Answer:
Verified
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