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If You Were to Use an Aggregate Supply Aggregate Demand

Question 3

Multiple Choice

If you were to use an Aggregate Supply Aggregate Demand diagram to model nondiscretionary and discretionary fiscal policy in reaction to a negative aggregate demand shock, you would see the aggregate demand curve move


A) to the right as a result of the shock.
B) to the left as a result of the shock.
C) back toward its pre-shock position as a result of these policies.
D) to the left, back toward its pre-shock position as a result of these policies.

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