Which response would be most likely to cause that shift

Reference no: EM131835395

Question: Using the following figure, suppose that a change in fiscal policy shifts AD from AD(1) to AD(2). Which response would be most likely to cause that shift? Choose one of a, b, c, or d.

a. A rise in taxes OR a rise in government spending

b. A rise in taxes OR a fall in government spending

c. A fall in taxes OR a rise in government spending

d. A fall in taxes OR a fall in government spending

Reference no: EM131835395

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