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Expansionary fiscal policy is described as shifting aggregate demand in which direction?

ANowhere
BOutward
CInward
DDownward
Answer & Solution
Correct answer: B. Outward
1. Fiscal policy moves the aggregate demand curve. 2. Fiscal policy works through changes in spending or taxes. 3. It shifts the aggregate demand outward in the case of expansionary fiscal policy. 4. Contractionary fiscal policy shifts it inward. _Source: OpenStax Principles of Macroeconomics for AP Courses 2e (CC BY 4.0), Ch 16 'Government Budgets and Fiscal Policy'_
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