Given AD₁ and AS₁ in Figure 8.3,the classical approach to achieving full employment at an output of $300 billion would be to A)Increase taxes and increase government spending to shift AD₁ to AD₂. B)Increase the growth of the money supply to shift AD₁ to AD₂. C)Do nothing and wait for "natural" market forces to achieve full employment. D)Use all available supply-side options.

Question

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The Answer of Given AD₁ and AS₁ in Figure 8.3,the classical approach to achieving full employment at an output of $300 billion would be to A)Increase taxes and increase government spending to shift AD₁ to AD₂. B)Increase the growth of the money supply to shift AD₁ to AD₂. C)Do nothing and wait for "natural" market forces to achieve full employment. D)Use all available supply-side options.

Given AD1 and AS1 in Figure 8

Given AD₁ and AS₁ in Figure 8