Image depicting the exam question

Hello all,

So, I came across this question on my economics final. It immediately struck me as odd. It's asking what effect expansionary fiscal policy would have in the Aggregate Demand - Aggregate Supply model. It lists some options and references different AD and AS curves.

The thing is that the graph doesn't show the AD-AS model or any of the curves listed. I'm very sure AD would move to the right, but I don't know where AD1 and AD2 are. This means I can't tell which answer means AD would move to the right and which one means AD would move to the left.

Is my reasoning sound so far? If not, please correct me. I've reached out to my professor, who said my answer was wrong and refused to elaborate beyond that. Hence why I am posting here.

Is this question answerable as it stands? Or am I missing something here? Thanks in advance.

Also, this is my first post on here, so if I broke a rule, apologies in advance.

  • $\begingroup$ Everything you say is sensible. The question is meaningless without some definition of $AD_1$ and $AD_2$ or at least a chart showing their relationship such as assets.coursehero.com/study-guides/lumen/images/… - though economics exams have notoriously poor quality control (I know a case where the faculty directly reused questions from previous years, even when the previous question has a dubious model answer which had already been complained about) $\endgroup$
    – Henry
    Sep 6, 2023 at 8:53
  • $\begingroup$ Thanks for your help here. I reached out to my professor and university administration about this question. Everyone I've talked to is defending it, which is bizarre. What should I do about this? $\endgroup$
    – Haythem19
    Sep 6, 2023 at 12:58


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