The government of Balearic is concerned about a recession, so it decides to implement expansionary fiscal policy. How would this policy be depicted in an AD-AS model? Expansionary fiscal policy would shift the AD curve to the right. shift the LRAS curve to the right and the AD curve to the right shift the LRAS curve to the left. shift the AD curve to the left. shift the LRAS curve to the left and the AD curve to the left.
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