Figure 12-3
-Refer to Figure 12-3. Suppose the aggregate demand curve is AD₁.All of the following events Jwould more likely bring the economy back to the natural rate of unemployment except

Question

Figure 12-3 -Refer to Figure 12-3. Suppose the aggregate demand curve is AD₁.All of the following events Jwould more likely bring the economy back to the natural rate of unemployment except

Quizplus · Accepted Answer

A one-time surcharge on individual income tax liabilities would decrease disposable income and consumption, leading to a decrease in aggregate demand and potentially prolonging the recession. The other options all have the potential to increase aggregate demand and potentially help bring the economy back to the natural rate of unemployment.

Figure 12-3 -Refer to Figure 12-3. Suppose the Aggregate Demand Curve Is