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Use the following to answer questions
Figure: Aggregate Demand and Fiscal Policy Use the following to answer questions  Figure: Aggregate Demand and Fiscal Policy   -(Figure: Aggregate Demand and Fiscal Policy) Refer to the figure.In the best case scenario,effective fiscal policy would take which action to correct an economy in recession at point Z? A)  increase aggregate demand to move the economy to point X B)  increase the LRAS curve to a level above 3% C)  decrease the LRAS curve to a level below 2% D)  increase aggregate demand to move the economy to point W
-(Figure: Aggregate Demand and Fiscal Policy) Refer to the figure.In the best case scenario,effective fiscal policy would take which action to correct an economy in recession at point Z?


Definitions:

Incorporation

The process of legally declaring a corporate entity to be separate from its owners, thereby providing limited liability and other benefits.

Capacity to Contract

The legal ability of an individual or entity to enter into a binding contract, having the necessary age, mental state, and authority.

Intoxicated

A state of impairment or being under the influence of alcohol or drugs, which can affect a person's physical and cognitive abilities.

Incapacity

A physical or mental condition that makes an individual unable to manage their own affairs or to understand the nature and effects of their actions.

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