In a number of middle to low-income economies around the world, governments may run an expansionary policy of huge and sustained budget deficits. This policy Question 22 options: a) counters inflation without regard to the shift to the left in aggregate demand. b) will shift aggregate demand to the right, so that output is beyond the potential GDP level. c) uses the central bank as a mechanism for making loans to politically favored firms. d) will begin a cycle of heavy reliance on economic growth from a few exported products