Given the data and policy, what happens in the AD/AS model? Select one: O A. Aggregate Demand (AD) increase, and the AD curve shifts to the right (upwards) O B. Aggregate Supply (AS) increase, and the AS curve shifts to the right (downwards) O C. Aggregate Supply (AS) increase, and the AS curve shifts to the left (upwards) O D. Aggregate Demand (AD) increase, and the AD curve shifts to the left (downwards)

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Chapter1: Making Economics Decisions
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The following diagram shows changes in fiscal policy by the South African government from the beginning of 2008, until the end of 2014. Study it carefully and answer the
question which follows.
SOUTH AFRICA GOVERNMENT SPENDING
620000
****
600000
580000
F N E EH A A EE E E
560000
540000
520000
500000
480000
460000
1/1/2008
1/1/2010
1/1/2012
Transcribed Image Text:The following diagram shows changes in fiscal policy by the South African government from the beginning of 2008, until the end of 2014. Study it carefully and answer the question which follows. SOUTH AFRICA GOVERNMENT SPENDING 620000 **** 600000 580000 F N E EH A A EE E E 560000 540000 520000 500000 480000 460000 1/1/2008 1/1/2010 1/1/2012
Given the data and policy, what happens in the AD/AS model?
Select one:
O A. Aggregate Demand (AD) increase, and the AD curve shifts to the right (upwards)
O B. Aggregate Supply (AS) increase, and the AS curve shifts to the right (downwards)
OC. Aggregate Supply (AS) increase, and the AS curve shifts to the left (upwards)
O D. Aggregate Demand (AD) increase, and the AD curve shifts to the left (downwards)
Transcribed Image Text:Given the data and policy, what happens in the AD/AS model? Select one: O A. Aggregate Demand (AD) increase, and the AD curve shifts to the right (upwards) O B. Aggregate Supply (AS) increase, and the AS curve shifts to the right (downwards) OC. Aggregate Supply (AS) increase, and the AS curve shifts to the left (upwards) O D. Aggregate Demand (AD) increase, and the AD curve shifts to the left (downwards)
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