Exhibit 12-2
-If the government wants the economy illustrated in Exhibit 12-2 to be at full employment,it should

Question

Exhibit 12-2 
-If the government wants the economy illustrated in Exhibit 12-2 to be at full employment,it should

Quizplus · Accepted Answer

To achieve full employment, the government should not take actions that would reduce aggregate demand, such as increasing taxes, decreasing transfer payments, or decreasing government purchases. Waiting for the SRAS curve to shift left would not help either, as it would reduce output. Therefore, none of the options provided are suitable actions to achieve full employment.

Exhibit 12-2 -If the Government Wants the Economy Illustrated in Exhibit 12-2