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

Using the AD-AS Model to Explain the Need for and the Effects of Expansionary Fiscal Policies Draw a graph showing an economy experiencing a recessionary gap (see Figure 6 (b) in Learning Unit 6). If __________ fiscal policy is enacted, and in addition, AS shifts __________ due to a fall in crude oil prices, this policy might be successful in __________. Group of answer choices contractionary; left; reaching full employment contractionary; right; closing the entire gap expansionary; left; closing the entire gap expansionary; right; closing the entire gap

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