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Figure 10.2 -Refer to Figure 10.2 to Answer the Question Below. Points

Question 105

Multiple Choice

  Figure 10.2 -Refer to Figure 10.2 to answer the question below. Points A, B, and C correspond to a GDP level in Year 2. Suppose that in Year 1 the economy was projected to be at Pt. A by Year 2. Which of the following policies could bring the economy to Point C instead? A)  an ill- timed tax cut B)  an ill- timed tax increase C)  a correctly timed tax increase D)  a correctly timed tax cut Figure 10.2
-Refer to Figure 10.2 to answer the question below. Points A, B, and C correspond to a GDP level in Year 2. Suppose that in Year 1 the economy was projected to be at Pt. A by Year 2. Which of the following policies could bring the economy to Point C instead?


A) an ill- timed tax cut
B) an ill- timed tax increase
C) a correctly timed tax increase
D) a correctly timed tax cut

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