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-If an Economy Is at the Short-Run Equilibrium Illustrated by the Figure

Question 66

Multiple Choice

-If an economy is at the short-run equilibrium illustrated by the figure above, a discretionary fiscal policy to adjust the economy to full employment is to A) decrease taxes. B) decrease the quantity of money. C) increase government spending. D) increase taxes and decrease government spending simultaneously. E) increase the quantity of money.
-If an economy is at the short-run equilibrium illustrated by the figure above, a discretionary fiscal policy to adjust the economy to full employment is to


A) decrease taxes.
B) decrease the quantity of money.
C) increase government spending.
D) increase taxes and decrease government spending simultaneously.
E) increase the quantity of money.

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