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(Figure: Fiscal Policy Choices) Use Figure: Fiscal Policy Choices. It would be appropriate to use expansionary fiscal policy to shift aggregate demand in from Panel

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(Figure: Fiscal Policy Choices) Use Figure: Fiscal Policy Choices. It would be appropriate to use expansionary fiscal policy to shift aggregate demand in from Panel (a) Panel (b) Price level Price level SRAS SRAS P2 P1 P2 AD 2 AD AD1 AD2 Y1 YP Real GDP Real GDP panel (b); AD] to AD2 panel (a); AD2 to AD] Opanel (a); AD] to AD2 panel (b); AD2 to AD](Figure: Fiscal Policy Choices) Use Figure: Fiscal Policy Choices. It would be appropriate to use expansionary fiscal policy to shift aggregate demand in from Panel (a) Panel (b) Price level Price level SRAS SRAS P2 P1 P2 AD 2 AD AD1 AD2 Y1 YP Real GDP Real GDP panel (b); AD] to AD2 panel (a); AD2 to AD] Opanel (a); AD] to AD2 panel (b); AD2 to AD]

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