Question

Refer to figure above, An expansionary fiscal policy would be most effective in raising output with little or no inflation when the aggregate demand curve shifts from

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1.     Refer to figure above, An expansionary fiscal policy would be most effective in raising output with little or no inflation when the aggregate demand curve shifts from 

a.      AD1 to AD2.

b.     AD3 to AD4.

c.      AD5 to AD6.

d.     AD1 to AD6.


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