Assuming the economy in the graph shown is currently at equilibrium A, if the government wanted to enact a policy it would likely enact:



A. expansionary fiscal policy in an effort to move aggregate demand to the right.

B. contractionary fiscal policy in an effort to move aggregate demand to the left.

C. expansionary fiscal policy in an effort to move aggregate demand to the left.

D. contractionary fiscal policy in an effort to move aggregate demand to the right.


A. expansionary fiscal policy in an effort to move aggregate demand to the right.

Economics

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