Question: Using the following figure, suppose that a change in fiscal policy shifts AD from AD(1) to AD(2). Which response would be most likely to cause that shift? Choose one of a, b, c, or d.
a. A rise in taxes OR a rise in government spending
b. A rise in taxes OR a fall in government spending
c. A fall in taxes OR a rise in government spending
d. A fall in taxes OR a fall in government spending