(Figure: Short-Run Equilibrium) Use Figure: Short-Run Equilibrium. Given the scenario depicted in the diagram, an appropriate fiscal policy action would be:
A) a decrease in transfer payments
B) a decrease in transfer payments.
C) an increase in government purchases
D) an increase in government purchases.
E) a decrease in tax rates.
F) a decrease in tax rates
G) an increase in transfer payments
H) an increase in transfer payments.
Correct Answer:
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