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Question 362

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Use the following to answer questions:
Figure: Fiscal Policy Options Use the following to answer questions: Figure: Fiscal Policy Options -(Figure: Fiscal Policy Options) Look at the figure Fiscal Policy Options. If the aggregate demand curve is AD : A) the economy is in long-run equilibrium. B) an expansionary fiscal policy may be warranted. C) a contractionary fiscal policy may be warranted. D) the economy is in a recessionary gap.
-(Figure: Fiscal Policy Options) Look at the figure Fiscal Policy Options. If the aggregate demand curve is AD":


A) the economy is in long-run equilibrium.
B) an expansionary fiscal policy may be warranted.
C) a contractionary fiscal policy may be warranted.
D) the economy is in a recessionary gap.

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