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Question 20

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Use the following to answer questions :
Figure: Fiscal Policy Choices Use the following to answer questions : Figure: Fiscal Policy Choices -(Figure: Fiscal Policy Choices) Look at the figure Fiscal Policy Choices. It would be appropriate to use contractionary fiscal policy to shift aggregate demand in _____ from _____. A) panel (b) ; AD<sub>1</sub> to AD<sub>2</sub> B) panel (a) ; AD<sub>2</sub> to AD<sub>1</sub> C) panel (a) ; AD<sub>1</sub> to AD<sub>2</sub> D) panel (b) ; AD<sub>2</sub> to AD<sub>1</sub>
-(Figure: Fiscal Policy Choices) Look at the figure Fiscal Policy Choices. It would be appropriate to use contractionary fiscal policy to shift aggregate demand in _____ from _____.


A) panel (b) ; AD1 to AD2
B) panel (a) ; AD2 to AD1
C) panel (a) ; AD1 to AD2
D) panel (b) ; AD2 to AD1

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