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Exhibit: Fiscal Policy Options
-(Exhibit: Fiscal Policy Options) Suppose the aggregate demand curve is AD₁.All of the following events would more likely bring the economy back to the natural rate of unemployment except

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Use the following to answer questions .
Exhibit: Fiscal Policy Options

-(Exhibit: Fiscal Policy Options) Suppose the aggregate demand curve is AD₁.All of the following events would 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 for consumers, leading to a decrease in consumption and a decrease in aggregate demand. This would make it less likely for the economy to return to the natural rate of unemployment. The other options would increase aggregate demand, making it more likely for the economy to return to the natural rate of unemployment.

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