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Refer to the Information Provided in Figure 17

Question 88

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Refer to the information provided in Figure 17.2 below to answer the questions that follow. Refer to the information provided in Figure 17.2 below to answer the questions that follow. Figure 17.2 -Refer to Figure 17.2. According to the new classical economists, under rational expectations an expected decrease in government spending would A) shift AS<sub>1</sub> to the right. B) shift AD<sub>1</sub> to the right. C) shift AD<sub>1</sub> to the left. D) not change AD and AS. Figure 17.2
-Refer to Figure 17.2. According to the new classical economists, under rational expectations an expected decrease in government spending would


A) shift AS1 to the right.
B) shift AD1 to the right.
C) shift AD1 to the left.
D) not change AD and AS.

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