Refer to the information provided in Figure 32.2 below to answer the question(s) that follow. Figure 32.2 -Refer to Figure 32.2. According to the new classical economists, under rational expectations an expected decrease in government spending would A) shift AS₁ to the right. B) shift AD₁ to the right. C) shift AD₁ to the left. D) not change AD and AS.

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The Answer of Refer to the information provided in Figure 32.2 below to answer the question(s) that follow. Figure 32.2 -Refer to Figure 32.2. According to the new classical economists, under rational expectations an expected decrease in government spending would A) shift AS₁ to the right. B) shift AD₁ to the right. C) shift AD₁ to the left. D) not change AD and AS.

Refer to the Information Provided in Figure 32