If aggregate output lies above potential output, then an appropriate fiscal policy would be to _____, which will shift the AD curve to the _____.
A) decrease government purchases; right
B) decrease government purchases; right.
C) increase government purchases; left.
D) increase government purchases; left
E) decrease government purchases; left.
F) decrease government purchases; left
G) raise tax rates; right.
H) raise tax rates; right
Correct Answer:
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