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Mathematics, 08.12.2020 23:00 mooncake9090

Which of the following would be the theoretical outcome of expansionary fiscal policy in the following aggregate demand-aggregate supply model (where LRAS - long-run aggregate supply and GDP gross domestic product)?
Price
level
(P)
LRAS
SRAS,
SRAS
100
95
90
AD,
AD
Real GDP
Y, Y
uy Æ° c =Æ°
O a. The aggregate demand (AD) curve would shift from AD, to AD2.
Ob. The AD curve would shift from AD2 to AD.
O c The AD curve would shift from AD, to AD2 at the same time that the SRAS curve would shift from SRAS, to SRAS2.
Od. The short-run aggregate supply (SRAS) curve would shift from SRASÄ… to SRAS.
Oe. The SRAS curve would shift from SRAS, to SRAS 2.


Which of the following would be the theoretical outcome of expansionary fiscal policy in the follow

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