Figure 27-3
-Refer to Figure 27-3. 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 27-3 
-Refer to Figure 27-3. 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 consumer spending and shifting the aggregate demand curve to the right, moving the economy from point A to point B.

Figure 27-3 -Refer to Figure 27-3. in the Graph Above, Suppose the Above