Multiple Choice
Use the figure below to answer the following question(s) . Figure 12-2
Refer to Figure 12-2. If an economy is operating in the short run at point a, Keynesian analysis indicates that expansionary fiscal policy will
A) increase AD and move the economy toward point b.
B) increase AD and move the economy toward point c.
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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