If the economy is at point "a" with an output of Y₁ what type of fiscal policy would be used to increase output to Y₂?

Name: If the economy is at point "a" with an output of Y 1 what type of fiscal policy would be used to increase output to Y 2 ?
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Question

Quizplus · Accepted Answer

Expansionary fiscal policy would be used to increase output. This can include increasing government spending or decreasing taxes to stimulate consumer spending and business investment.

If the Economy Is at Point "A" with an Output