The caption under a cartoon in the text reads "When the economy is flat on its back,it may need both monetary and fiscal stimulus." Such a policy action will shift the aggregate
A)Demand curve to the right.
B)Demand curve to the left.
C)Supply curve to the right.
D)Supply curve to the left.

Question

Quizplus · Accepted Answer

Both monetary and fiscal stimulus policies aim to increase aggregate demand in the economy. An increase in aggregate demand leads to a shift in the AD curve to the right. Therefore, the correct answer is A.

The Caption Under a Cartoon in the Text Reads "When