Refer to the graph shown. Expansionary fiscal policy shifts the aggregate demand curve from:
A. AD0 to AD2 whether or not crowding out occurs.
B. AD0 to AD2 but then back to AD1 if crowding out occurs.
C. AD0 to AD2 but then out to AD3 if crowding out occurs.
D. AD2 to AD1 and then from AD1 to AD0 if crowding out occurs.
Answer: B
You might also like to view...
Which of the following is accurate concerning the nature of international law?
a. It regulates all matters and relations between states. b. It addresses a narrow range of issues that arise between states. c. It has traditionally been regarded as harmful to elite superpowers. d. It is a set of rules and obligations that states recognize as binding on each other.
Over the past several years, consumers have had an increasing interest in getting a tattoo. This means that the ________ for tattoos has ________.
A) demand; increased B) quantity demanded; increased C) quantity demanded; decreased D) demand; decreased