Use the following to answer questions .
Exhibit: Inflation and Unemployment 1
-(Exhibit: Inflation and Unemployment 1) Consider point A where inflation is relatively high and unemployment is relatively low. In order to move down the curve toward point B, 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

Use the following to answer questions .
Exhibit: Inflation and Unemployment 1 
-(Exhibit: Inflation and Unemployment 1) Consider point A where inflation is relatively high and unemployment is relatively low. In order to move down the curve toward point B, 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 C

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