Advanced Placement (AP)

If an economy was operating below full employment, a. the intersection of ad and sras would be to the right of lras. b. the intersection of ad and sras would be to the left of lras. c. the intersection of ad and sras would be equal to lras. d. congress would use contractionary fiscal policy to shift lras into equilibrium. e. congress would use expansionary fiscal policy to shift lras into equilibrium.

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