An economy in recession would call for which kind of fiscal policy under the aggregate demand model?

1. The model matches the policy direction to the shortfall. 2. The aggregate demand and supply model judges which policy is appropriate. 3. Expansionary fiscal policy shifts aggregate demand outward. 4. Contractionary fiscal policy shifts it inward. 5. A recession is a shortfall of demand, so shifting demand outward is what is called for. _Source: OpenStax Principles of Macroeconomics for AP Courses 2e (CC BY 4.0), Ch 16 'Government Budgets and Fiscal Policy'_