in the dynamic model of AD-AS in the figure to the right, if the economy is at point A in year 1 and is expected to go to point 8 in year 2, Congress and the president would most likely pursue OA expansionary fiscal policy. OB expansionary automatic stabilizers OC. contractionary fiscal policy OD. contractionary monetary policy OE expansionary monetary policy

Give me correct answer and full explanation and don't use chatGPT otherwise I give downvote

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(Figure: Fiscal Policy Options) Use Figure: Fiscal Policy Options. If the aggregate demand curve is AD': Price level LRAS SRAS AD" AD

Which statement is CORRECT? A) Automatic stabilizers indicate deliberate action by policy makers. O B) Discretionary fiscal policy shows automatic adjustments without any specific effort by policy makers. C) Discretionary fiscal policy indicates deliberate action by policy makers. Automatic stabilizers are risky tó use and sometimes can get the economy D) destabilized.

Figure 16-7 Price level P3 a P₂ P₁ 0 LRAS A increase taxes LRAS 8 с Y₂ Ya contractionary fiscal policy O increase government spending O decrease interest rates SRAS₁ AD₁ SRAS AD₂ Refer to Figure 16-7. Given that the economy has moved from A to B in the graph above, which of the following would be the appropriate fiscal policy to achieve potential GDP? Real GDP (trillions of dollars)

How much government spending needs to be increased to maintain full employment in the economy If the economy was facing recessionary gap of $900 billions? Assume MPC is .9. How much tax cut should government give if they wanted to eliminate this recessionary gap through tax cut?

indentified Qe but not the rest

Asap both 1.a) Which of the following statements is correct?l.Expansionary fiscal policy is used to remove a recessionary gap.ll. Expansionary fiscal policy is used to shift AD right.A) l onlyB) I onlyC)both I and ID) neither I nor ll 1.b) Which of the following are examples of contractionary fiscal policy?A) decreasing government expendituresB) increasing taxesC) increasing transfer paymentsD) A and B are both contractionary fiscal policiesE) A, B, and C are all contractionary fiscal policies