Figure 27-6
-Refer to Figure 27-6. In the dynamic model of AD-AS in the figure above, if the economy is at point A in year 1 and is expected to go to point B in year 2, Congress and the president would most likely
A) increase the money supply and decrease the interest rate.
B) increase taxes.
C) increase government spending.
D) increase oil prices.
E) raise interest rates.

Question

Figure 27-6 
-Refer to Figure 27-6. In the dynamic model of AD-AS in the figure above, if the economy is at point A in year 1 and is expected to go to point B in year 2, Congress and the president would most likely
A) increase the money supply and decrease the interest rate. 
B) increase taxes. 
C) increase government spending. 
D) increase oil prices. 
E) raise interest rates.

Quizplus · Accepted Answer

The Answer of Figure 27-6 
-Refer to Figure 27-6. In the dynamic model of AD-AS in the figure above, if the economy is at point A in year 1 and is expected to go to point B in year 2, Congress and the president would most likely
A) increase the money supply and decrease the interest rate. 
B) increase taxes. 
C) increase government spending. 
D) increase oil prices. 
E) raise interest rates.

Figure 27-6 -Refer to Figure 27-6. in the Dynamic Model of AD-AS