Answer to Question #112186 in Macroeconomics for zukile

Question #112186

In the AD-AS model, an expansionary fiscal policy may lead to a...
1.rightward shift of aggregate demand and demand-pull inflation.
2.leftward shift of aggregate demand and demand-pull inflation.
3.rightward shift of aggregate supply and cost-push inflation.
4. leftward shift of aggregate supply and cost-push inflation.

Expert's answer

1) rightward shift of aggregate demand and demand-pull inflation.

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