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

Question 110

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Figure 12-3 Figure 12-3 -Refer to Figure 12-3. Suppose the aggregate demand curve is AD<sub>2</sub>.<sub> </sub>All of the following events Would more likely bring the economy back to the natural rate of unemployment except A) the government orders a one-time surcharge of 10% to be added to individual income tax liabilities. B) the government raises business taxes. C) the Federal Reserve sells bonds on the open market. D) the government orders a cut in withholding rates designed to increase disposable income and boost consumption.
-Refer to Figure 12-3. Suppose the aggregate demand curve is AD2. All of the following events
Would more likely bring the economy back to the natural rate of unemployment except


A) the government orders a one-time surcharge of 10% to be added to individual income tax liabilities.
B) the government raises business taxes.
C) the Federal Reserve sells bonds on the open market.
D) the government orders a cut in withholding rates designed to increase disposable income and boost consumption.

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