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Refer to Figure 13.3 for the Following Question

Question 39

Multiple Choice
Refer to Figure 13.3 for the following question.
Figure 13.3
 
-Refer to Figure 13.3. Given that the economy has moved from A to B in the graph above, which of the following would be the appropriate fiscal policy to achieve potential GDP?
A)increase interest rates 
B)increase government spending 
C)decrease interest rates 
D)increase taxes

Refer to Figure 13.3 for the following question.
Figure 13.3
Refer to Figure 13.3 for the following question. Figure 13.3    -Refer to Figure 13.3. Given that the economy has moved from A to B in the graph above, which of the following would be the appropriate fiscal policy to achieve potential GDP? A) increase interest rates B) increase government spending C) decrease interest rates D) increase taxes
-Refer to Figure 13.3. Given that the economy has moved from A to B in the graph above, which of the following would be the appropriate fiscal policy to achieve potential GDP?


A) increase interest rates
B) increase government spending
C) decrease interest rates
D) increase taxes

Correct Answer:

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