Figure: Aggregate Demand Shifts 2 
Refer to the figure.Suppose the economy is initially at point A in the diagram.If a decrease in investment spending causes a shift of the AD curve from AD1 to AD2,then the government can avoid a short-run recession by:
Definitions:
Absorption Costing
This accounting practice involves the comprehensive addition of manufacturing costs—direct materials, direct labor, and both variable and fixed overheads—to the price of a product.
Fixed Manufacturing Overhead
Fixed manufacturing overhead consists of indirect production expenses that remain constant regardless of the volume of products manufactured, like equipment depreciation.
Deferred
Refers to actions, expenses, or incomes that are postponed or delayed to a future period instead of being recognized immediately.
Released
Released refers to products, news, or information that has been made available to the public or a specific audience.
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