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Figure 16-7 -Refer to Figure 16-7.Given That the Economy Has Moved from Has

Question 116

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Figure 16-7 Figure 16-7 -Refer to Figure 16-7.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 taxes B) increase government spending C) contractionary fiscal policy D) decrease interest rates
-Refer to Figure 16-7.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 taxes
B) increase government spending
C) contractionary fiscal policy
D) decrease interest rates

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