Refer to the Information Provided in Figure 18

question 92

Multiple Choice

Refer to the information provided in Figure 18.1 below to answer the questions that follow. Figure 18.1
-Refer to Figure 18.1.According to the new classical economists,under rational expectations an expected increase in government spending would

• A)shift AS1 to the right.
• B)shift AD1 to the right.
• C)shift AD1 to the left.
• D)none of the above