Which of the following would be the theoretical outcome of contractionary fiscal policy in the following aggregate demand-aggregate supply model,where LRAS is long-run aggregate supply and SRAS is short-run aggregate supply? A) The aggregate demand (A D)curve would shift from AD₁ to AD₂. B) The short-run aggregate supply (SRA S)curve would shift from SRAS₂ to SRAS₁. C) The short-run aggregate supply (SRA S)curve would shift from SRAS₁ to SRAS₂. D) The aggregate demand (A D)curve would shift from AD₁ to AD₂ at the same time that the SRAS curve would shift from SRAS₁ to SRAS₂. E) The aggregate demand (A D)curve would shift from AD₂ to AD₁.

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The Answer of Which of the following would be the theoretical outcome of contractionary fiscal policy in the following aggregate demand-aggregate supply model,where LRAS is long-run aggregate supply and SRAS is short-run aggregate supply? A) The aggregate demand (A D)curve would shift from AD₁ to AD₂. B) The short-run aggregate supply (SRA S)curve would shift from SRAS₂ to SRAS₁. C) The short-run aggregate supply (SRA S)curve would shift from SRAS₁ to SRAS₂. D) The aggregate demand (A D)curve would shift from AD₁ to AD₂ at the same time that the SRAS curve would shift from SRAS₁ to SRAS₂. E) The aggregate demand (A D)curve would shift from AD₂ to AD₁.

Which of the Following Would Be the Theoretical Outcome of Contractionary