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Figure 13.1 Aggregate Supply and Aggregate Demand

Question 78

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Figure 13.1 Aggregate Supply and Aggregate Demand
Figure 13.1 Aggregate Supply and Aggregate Demand -Refer to Figure 13.1. A correct discretionary fiscal policy to enact when the economy is experiencing inflation is to A) increase government spending, causing AD<sub>0</sub> to shift to AD<sub>1</sub> B) increase taxes, causing AD<sub>0</sub> to shift to AD<sub>1</sub> C) decrease government spending, causing AD<sub>1</sub> to shift to AD<sub>0</sub> D) decrease taxes, causing AD<sub>1</sub><sub> </sub>to shift to AD<sub>0</sub>
-Refer to Figure 13.1. A correct discretionary fiscal policy to enact when the economy is experiencing inflation is to


A) increase government spending, causing AD0 to shift to AD1
B) increase taxes, causing AD0 to shift to AD1
C) decrease government spending, causing AD1 to shift to AD0
D) decrease taxes, causing AD1 to shift to AD0

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