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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
- 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.
- A rise in taxes OR a rise in government spending
- A rise in taxes OR a fall in government spending
- A fall in taxes OR a rise in government spending
- A fall in taxes OR a fall in government spending
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