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During a recession consumption falls, causing the aggregate demand curve to shift to the ________. In...

During a recession consumption falls, causing the aggregate demand curve to shift to the ________. In response, the government can increase government spending to shift the ________.

a.

left; aggregate demand (AD) curve to the right

b.

left; short-run aggregate supply (SRAS) curve to the right

c.

right; aggregate demand (AD) curve to the left

d.

right; short-run aggregate supply (SRAS) curve to the right

e.

left; long-run aggregate supply (LRAS) curve to the right
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Answer #1

During the recession the demand falls, causing the aggregate demand curve to shift to the "left", in response the government can adopt expansionary fiscal policy that will shift the aggregate demand curve to the right.

The answer is "A".

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