Question

In the AD-AS model, an expansionary fiscal policy may lead to a...

a. rightward shift of aggregate demand and demand-pull inflation..

d. leftward shift of aggregate supply and cost push inflation.

b. leftward shift of aggregate demand and demand-pull inflation.

O c. rightward shift of aggregate supply and cost-push inflation.

Answer 1

The right answer is d. leftward shift of aggregate supply and cost push inflation