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The effect of expansionary fiscal policy is shown as a

Multiple Choice
rightward shift in the economy's aggregate demand curve.
movement along an existing aggregate demand curve.
leftward shift in the economy's aggregate supply curve.
leftward shift in the economy's aggregate demand curve.

1 answer

The effect of expansionary fiscal policy is shown as a rightward shift in the economy's aggregate demand curve.

Expansionary fiscal policy involves increased government spending and/or tax cuts, which boosts consumer and business spending overall, leading to an increase in aggregate demand.