Use the figure below to answer the following questions.

Figure 29.3.1
-Refer to Figure 29.3.1, which shows the outlays and revenues for the government of Pianoland. A discretionary fiscal restraint policy would be shown as
A)a movement from left to right along the revenues curve.
B)a movement from left to right along the outlays curve.
C)an upward shift of the revenues curve.
D)an upward shift of the outlays curve.
E)both A and C

Question

Use the figure below to answer the following questions.
  
Figure 29.3.1
-Refer to Figure 29.3.1, which shows the outlays and revenues for the government of Pianoland. A discretionary fiscal restraint policy would be shown as
A)a movement from left to right along the revenues curve. 
B)a movement from left to right along the outlays curve. 
C)an upward shift of the revenues curve. 
D)an upward shift of the outlays curve. 
E)both A and C

Quizplus · Accepted Answer

A discretionary fiscal restraint policy involves increasing taxes or reducing government spending, which would result in an upward shift of the revenues curve as the government collects more revenue through increased taxes.

Use the Figure Below to Answer the Following Questions