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Refer to the Information Provided in Figure 12

Question 12

Multiple Choice

Refer to the information provided in Figure 12.2 below to answer the questions that follow. Refer to the information provided in Figure 12.2 below to answer the questions that follow. Figure 12.2 -Refer to Figure 12.2. An expansionary fiscal policy would be most effective in raising output with little or no inflation when the aggregate demand curve shifts from A) AD<sub>1</sub> to AD<sub>2</sub>. B) AD<sub>3</sub> to AD<sub>4</sub>. C) AD<sub>5</sub> to AD<sub>6</sub>. D) AD<sub>1</sub> to AD<sub>6</sub>. Figure 12.2
-Refer to Figure 12.2. An expansionary fiscal policy would be most effective in raising output with little or no inflation when the aggregate demand curve shifts from


A) AD1 to AD2.
B) AD3 to AD4.
C) AD5 to AD6.
D) AD1 to AD6.

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