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What is an appropriate government response to shift aggregate demand back to ADf? LRAS, SRAS, and AD showing a recessionary gap A graph with price
What is an appropriate government response to shift aggregate demand back to ADf? LRAS, SRAS, and AD showing a recessionary gap A graph with price on the y-axis and real gross domestic product on the x-axis. It has an upward sloping short-run aggregate supply curve that starts flat on the lower left and gets stepper further to the right. There are two downward-sloping aggregate demand curves labeled ADf and ADr. ADf is above and to the right of ADr. ADf intersects short-rung aggregate supply at Ef and ADr intersects short-run aggregate supply at Er. Select all that apply: enact tax increases increase direct government spending decrease direct government spending enacting tax cuts
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