Refer to Figure 18.3 for the following question.
Figure 18.3
-Refer to Figure 18.3.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 interest rates
B) Increase government spending
C) Decrease interest rates
D) Increase taxes

Question

Refer to Figure 18.3 for the following question.
Figure 18.3 
-Refer to Figure 18.3.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 interest rates 
B) Increase government spending 
C) Decrease interest rates 
D) Increase taxes

Quizplus · Accepted Answer

The Answer of Refer to Figure 18.3 for the following question.
Figure 18.3 
-Refer to Figure 18.3.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 interest rates 
B) Increase government spending 
C) Decrease interest rates 
D) Increase taxes

Refer to Figure 18.3 for the Following Question