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Using the following figure, suppose that a change in fiscalpolicy shifts AD from AD (1) to AD (2). Which response would bemost likely to cause

  1. Using the following figure, suppose that a change in fiscalpolicy shifts AD from AD (1) to AD (2). Which response would bemost likely to cause that shift? Choose one of a, b, c, or d.
    1. A rise in taxes OR a rise in government spending
    2. A rise in taxes OR a fall in government spending
    3. A fall in taxes OR a rise in government spending
    4. A fall in taxes OR a fall in government spending

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