Answer to Question #337813 in Microeconomics for Hlelo

Question

In the AD-AS model, an expansionary fiscal policy

may lead to a..

O a. rightward shift of aggregate demand and

demand-pull inflation.

O b. leftward shift of aggregate demand and

demand-pull inflation.

O c. rightward shift of aggregate supply and

cost-push inflation.

O d. leftward shift of aggregate supply and cost-

push inflation.

Answer 1

b. leftward shift of aggregate demand and

demand-pull inflation.