Figure 16-3
-Refer to Figure 16-3.In the graph above,suppose the economy is initially at point A.The movement of the economy to point B as shown in the graph illustrates the effect of which of the following policy actions by the Congress and the president?

Question

Figure 16-3 
-Refer to Figure 16-3.In the graph above,suppose the economy is initially at point A.The movement of the economy to point B as shown in the graph illustrates the effect of which of the following policy actions by the Congress and the president?

Quizplus · Accepted Answer

A decrease in income taxes would increase disposable income, leading to higher consumption and aggregate demand, shifting the economy from point A to point B.

Figure 16-3 -Refer to Figure 16-3.In the Graph Above,suppose the Economy Is