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Figure 12.2

Question 12

Multiple Choice

Figure 12.2: Figure 12.2: -Using Figure 12.2,which fiscal policy action will increase aggregate demand from AD<sub>2</sub> to AD<sub>3</sub> ceteris paribus? A) An increase in consumption B) An increase in taxes C) A decrease in exports D) A decrease in government spending
-Using Figure 12.2,which fiscal policy action will increase aggregate demand from AD2 to AD3 ceteris paribus?


A) An increase in consumption
B) An increase in taxes
C) A decrease in exports
D) A decrease in government spending

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