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Figure 16-9 -Refer to Figure 16-9.Given That the Economy Has Moved from Has

Question 109

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Figure 16-9 Figure 16-9   -Refer to Figure 16-9.Given that the economy has moved from A to B in the graph above,which of the following would the appropriate fiscal policy to achieve potential GDP? A) increase taxes B) increase government spending C) decrease the money supply D) increase interest rates
-Refer to Figure 16-9.Given that the economy has moved from A to B in the graph above,which of the following would 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:

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