Refer to the below figure. If an economy operates in the short run at point a, choose the one alternative that best completes the statement or answers the question. Price level Real GDP Goods and services market QI1-Keynesian analysis indicates that restrictive fiscal policy will A. increase SRAS and move the economy toward point b. B. decrease SRAS and move the economy toward point c. C. decrease AD and move the economy toward point b. D. increase AD and move the economy toward point c. Q2-Which of the following would a Keynesian economist be most likely to favor? A. A tax cut. B. An increase in government expenditures C. A reduction in the budget deficit D. A shift to a more expansionary monetary policy Q3-Reliance on the self-correcting mechanism will A. result in lower resource prices and a shift to the right in the SRAS curve. B. lead to lower interest rates and a shift to the right in the AD Giia%) C. result in higher resource prices and a shift to the left in the N LGN i e D. lead to higher interest rates and a shift to the right in the AD curve. Q4- Which of the following will be most likely to happen? A. A decrease in resource prices B. An increase in resource prices C. The current output will be sustained 1n the future. D. An increase in aggregate demand