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:15 AD FIGURE 24-1 Refer to Figure 24-1. If the economy is currently producing output of 'l'o and the government initiates an expansionary fiscal policy
:15 AD FIGURE 24-1 Refer to Figure 24-1. If the economy is currently producing output of 'l'o and the government initiates an expansionary fiscal policy adequate to close the output gap. the result is intended to be Select one: Q a. that the AD cunre will shift to the right until point B is reached. 0 b. the vertical line at V will shift to the left, intersecting the AS and AD curves at V0. 0 c. that the AS curye will shift to the right until point A is reached. Q d. that the A5 curye and the AD curve will shift left simultaneously. O e. no change in either price level or output, since expansionary fiscal policy is ineffective
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