Figure 16-6 -Refer to Figure 16-6.In the Dynamic Model of AD-AS in of AD-AS

question 310

Multiple Choice

Figure 16-6
-Refer to Figure 16-6.In the dynamic model of AD-AS in the figure above,if the economy is at point A in year 1 and is expected to go to point B in year 2,Congress and the president would most likely pursue

• A)expansionary fiscal policy.
• B)contractionary fiscal policy.
• C)expansionary monetary policy.
• D)contractionary monetary policy.
• E)expansionary automatic stabilizers.

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