A) do nothing since the economy appears to be achieving full-employment real output.
B) increase taxes and reduce government spending to shift the aggregate demand curve leftward from AD $A D _ { 3 } \text { to } A D _ { 2 }$ , assuming downward price ?exibility.
C) increase taxes on businesses to shift the aggregate supply curve rightward to reduce the price level.
D) increase taxes and reduce government spending to shift the aggregate demand curve from $A D _ { 3 } \text { to } A D _ { 1 }$

Question

A) do nothing since the economy appears to be achieving full-employment real output. 
B) increase taxes and reduce government spending to shift the aggregate demand curve leftward from AD $A D _ { 3 } \text { to } A D _ { 2 }$ , assuming downward price ?exibility. 
C) increase taxes on businesses to shift the aggregate supply curve rightward to reduce the price level. 
D) increase taxes and reduce government spending to shift the aggregate demand curve from $A D _ { 3 } \text { to } A D _ { 1 }$

Quizplus · Accepted Answer

The Answer of 
A) do nothing since the economy appears to be achieving full-employment real output. 
B) increase taxes and reduce government spending to shift the aggregate demand curve leftward from AD $A D _ { 3 } \text { to } A D _ { 2 }$ , assuming downward price ?exibility. 
C) increase taxes on businesses to shift the aggregate supply curve rightward to reduce the price level. 
D) increase taxes and reduce government spending to shift the aggregate demand curve from $A D _ { 3 } \text { to } A D _ { 1 }$

A) Do Nothing Since the Economy Appears to Be Achieving AD3 to AD2A D _ { 3 } \text { to } A D _ { 2 }AD3​ to AD2​

A) Do Nothing Since the Economy Appears to Be Achieving $A D _ { 3 } \text { to } A D _ { 2 }$