Figure 16-1
-Refer to Figure 16-1. Consider point B where unemployment is relatively high and inflation is relatively low. In order to move up the curve toward point A, what fiscal policy measures should the policymakers undertake?
A) Decrease taxes and government spending
B) Increase taxes and government spending
C) Increase taxes and decrease government spending
D) Decrease taxes and increase government spending

Question

Figure 16-1 
-Refer to Figure 16-1. Consider point B where unemployment is relatively high and inflation is relatively low. In order to move up the curve toward point A, what fiscal policy measures should the policymakers undertake?
A) Decrease taxes and government spending 
B) Increase taxes and government spending 
C) Increase taxes and decrease government spending 
D) Decrease taxes and increase government spending

Quizplus · Accepted Answer

The Answer is D

Figure 16-1 -Refer to Figure 16-1. Consider Point B Where Unemployment Is