When the government decides to apply expansionary fiscal policy A. Aggregate demand curve shifts to the...

When the government decides to apply expansionary fiscal policy

A. Aggregate demand curve shifts to the right.

B. Aggregate supply curve shifts to the right.

C. Aggregate supply curve shifts to the right.

D. Consumer price index remains the same.

Expert Solution

A. Aggregate demand curve shifts to the right. - is correct

Expansionary fiscal policy increase government spending or consumption spending which increases aggregate demand.

Rahul Sunny answered 2 years ago

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When the government decides to apply expansionary fiscal policy A. Aggregate demand curve shifts to the...

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Expert Solution

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