Use the Figure Below to Answer the Following Question(s)

question 76

Multiple Choice

Use the figure below to answer the following question(s) . Figure 11-2
Refer to Figure 11-2. If an economy operates in the short run at point a, Keynesian analysis indicates that restrictive fiscal policy will

• A) increase AD and move the economy toward point c.
• B) decrease AD and move the economy toward point b.
• C) increase SRAS and move the economy toward point b.
• D) decrease SRAS and move the economy toward point c.

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