Question: Using the AD-AS Model to Explain the Need for and the Effects of Contractionary Fiscal Policies Draw a graph showing an economy experiencing an inflationary

Using the AD-AS Model to Explain the Need for and the Effects of Contractionary Fiscal Policies Draw a graph showing an economy experiencing an inflationary gap (see Figure 6 (c) in Learning Unit 6). If __________ fiscal policy is enacted, and in addition, AD shifts __________ due to recessions in two major trading partner economies, this policy might be successful in closing the __________. Group of answer choices expansionary; right; entire gap expansionary; left; entire gap contractionary; left; entire gap contractionary; right; inflationary gap

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