If an economy is at the short-run equilibrium illustrated by the figure above, a discretionary fiscal
Policy to adjust the economy to full employment is to
A) decrease taxes.
B) increase taxes and decrease government spending simultaneously.
C) increase government spending.
D) decrease the quantity of money.
E) increase the quantity of money.
Correct Answer:
Verified
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A)a
Q121: An example of automatic fiscal policy is
A)expenditure
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