Suppose an Active Approach to Policy Is Followed

question 77

Multiple Choice

Suppose an active approach to policy is followed.How would an expansionary gap eventually close?  

• A) The aggregate demand curve would shift rightward. 
• B) The aggregate demand curve would shift leftward. 
• C) The short-run aggregate supply curve would shift rightward. 
• D) The short-run aggregate supply curve would shift leftward.

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