In 2008, Japan's government approved a 1 trillion fiscal stimulus plan comprised of both tax cuts and government expenditure increases. As a result
A) Japan's aggregate demand curve shifted rightward.
B) Japan's aggregate supply curve shifted leftward.
C) Japan's aggregate demand curve shifted leftward.
D) Japan's long-run aggregate supply curve shifted leftward.
Question 2
The figure above shows the demand and supply of dollars in the foreign exchange market. At a price of 1.20 Brazilian reals per dollar
A) there will be a shortage of dollars.
B) 120 billion dollars will be supplied.
C) 40 billion dollars will be demanded.
D) there will be a surplus of dollars.
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