Multiple Choice
Figure 18-9

-Refer to Figure 18-9.Given that the economy has moved from point A to point B in the graph above,which of the following would be the appropriate fiscal policy to achieve potential GDP?
A) increase taxes
B) increase government spending
C) decrease the money supply
D) increase interest rates
Correct Answer:
Verified
Related Questions
Q102: What are the key differences between how
Q105: If real equilibrium GDP is above potential
Q108: To combat inflation,Congress and the president should
A)decrease
Q110: Table 18-2