Refer to the Information Provided in Figure 18

Multiple Choice

Refer to the information provided in Figure 18.1 below to answer the questions that follow. Figure 18.1
-Refer to Figure 18.1.According to the new classical economists,under rational expectations an expected increase in government spending would

A) shift AS1 to the right.
B) shift AD1 to the right.
C) shift AD1 to the left.
D) none of the above