Expansionary fiscal policy causes the aggregate demand curve to shift to the _______ and is used to close a(n) _______ gap.

Respuesta :

The expansionary fiscal policy causes the aggregate demand curve to shift to the right and is used to close a recessionary gap.

What is an expansionary fiscal policy?

This is a fiscal policy that seeks to stimulate demand through the use of government income and increased spending.

Most time, this fiscal policy increases the level of aggregate demand through an increases in government spending.

Therefore, the word "right" and "recessionary gap" is correct.

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