Figure 27-9
-Refer to Figure 27-9. Given that the economy has moved from point A to point B in the graph above, which of the following would be the appropriate fiscal policy to achieve potential GDP?
A) increase taxes
B) increase government spending
C) decrease the money supply
D) increase interest rates

Question

Figure 27-9 
-Refer to Figure 27-9. Given that the economy has moved from point A to point B in the graph above, which of the following would be the appropriate fiscal policy to achieve potential GDP?
A) increase taxes 
B) increase government spending 
C) decrease the money supply 
D) increase interest rates

Quizplus · Accepted Answer

The Answer of Figure 27-9 
-Refer to Figure 27-9. Given that the economy has moved from point A to point B in the graph above, which of the following would be the appropriate fiscal policy to achieve potential GDP?
A) increase taxes 
B) increase government spending 
C) decrease the money supply 
D) increase interest rates

Figure 27-9 -Refer to Figure 27-9. Given That the Economy Has Moved