in the dynamic model of AD-AS in the figure to the right, if the economy is at point A in year 1 and is expected to go to point 8 in year 2, Congress and the president would most likely pursue OA expansionary fiscal policy. OB expansionary automatic stabilizers OC. contractionary fiscal policy OD. contractionary monetary policy OE expansionary monetary policy
in the dynamic model of AD-AS in the figure to the right, if the economy is at point A in year 1 and is expected to go to point 8 in year 2, Congress and the president would most likely pursue OA expansionary fiscal policy. OB expansionary automatic stabilizers OC. contractionary fiscal policy OD. contractionary monetary policy OE expansionary monetary policy
Chapter24: Fiscal Policy
Section: Chapter Questions
Problem 5P
Related questions
Question
![In the dynamic model of AD-AS in the figure to the right, if the economy is at point A in year 1 and is expected to go to
point B in year 2, Congress and the president would most likely pursue
OA expansionary fiscal policy.
OB. expansionary automatic stabilizers.
OC. contractionary fiscal policy.
OD. contractionary monetary policy.
OE. expansionary monetary policy.
Click to select your answer
MacBook Air
Price Level
104
100
101
LRAS, LRAS₂
A
B
11113AD
Real GOP
SRAS,
SRAS₂
AD₂](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6e097f7b-7e18-46ee-98f1-dc986cdeaa41%2Fabd096a7-f71c-4b96-8748-97bb47e09fac%2Fehz8g4k_processed.jpeg&w=3840&q=75)
Transcribed Image Text:In the dynamic model of AD-AS in the figure to the right, if the economy is at point A in year 1 and is expected to go to
point B in year 2, Congress and the president would most likely pursue
OA expansionary fiscal policy.
OB. expansionary automatic stabilizers.
OC. contractionary fiscal policy.
OD. contractionary monetary policy.
OE. expansionary monetary policy.
Click to select your answer
MacBook Air
Price Level
104
100
101
LRAS, LRAS₂
A
B
11113AD
Real GOP
SRAS,
SRAS₂
AD₂
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