The graph shown displays various economic outcomes. If the economy is currently at equilibrium D, to bring the economy back to its long-run equilibrium the government might:
A) increase spending.
B) increase income taxes.
C) decrease tax credits.
D) All of these would move the economy back to its long-run equilibrium from point D.

Question

The graph shown displays various economic outcomes.  If the economy is currently at equilibrium D, to bring the economy back to its long-run equilibrium the government might:
A) increase spending. 
B) increase income taxes. 
C) decrease tax credits. 
D) All of these would move the economy back to its long-run equilibrium from point D.

Quizplus · Accepted Answer

The Answer of The graph shown displays various economic outcomes.  If the economy is currently at equilibrium D, to bring the economy back to its long-run equilibrium the government might:
A) increase spending. 
B) increase income taxes. 
C) decrease tax credits. 
D) All of these would move the economy back to its long-run equilibrium from point D.

The Graph Shown Displays Various Economic Outcomes