The effect of expansionary fiscal policy is shown as aMultiple Choicerightward shift in the economy's aggregate demand curve.leftward shift in the economy's aggregate supply curve.leftward shift in the economy's aggregate demand curve.movement along an existing aggregate demand curve.

Multiple Choicerightward shift in the economy's aggregate demand curve.leftward shift in the economy's aggregate supply curve.leftward shift in the economy's aggregate demand curve.movement along an existing aggregate demand curve.

The usual aim of expansionary fiscal policy is to increaseMultiple Choiceaggregate demand.aggregate supply.both aggregate demand and aggregate supply.government spending.

Fiscal policy can shift: Group of answer choicesboth aggregate demand and potential outputaggregate demand onlyonly short-run functionsboth aggregate demand and short-run aggregate supply, but not long-run aggregate supply

The short-run effect of an increase in taxes isResponsesA a leftward shift of the aggregate demand curve and movement along the inflation adjustment line.a leftward shift of the aggregate demand curve and movement along the inflation adjustment line.B a rightward shift of the aggregate demand curve and movement along the inflation adjustment line.a rightward shift of the aggregate demand curve and movement along the inflation adjustment line.C a rightward shift of the aggregate demand curve and an upward shift of the inflation adjustment line.a rightward shift of the aggregate demand curve and an upward shift of the inflation adjustment line.D a leftward shift of the aggregate demand curve and an upward shift of the inflation adjustment line.a leftward shift of the aggregate demand curve and an upward shift of the inflation adjustment line.

A restrictive monetary policy is designed to shift theMultiple Choiceaggregate demand curve rightward.aggregate demand curve leftward.aggregate supply curve rightward.aggregate supply curve leftward.