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Question 174

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Use the following to answer questions:
Figure: Short-Run Equilibrium Use the following to answer questions: Figure: Short-Run Equilibrium -(Figure: Short-Run Equilibrium) Look at the figure Short-Run Equilibrium. If the economy is at equilibrium at Y<sub>1</sub> and P<sub>1</sub>, 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
-(Figure: Short-Run Equilibrium) Look at the figure Short-Run Equilibrium. If the economy is at equilibrium at Y1 and P1, 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

Correct Answer:

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