Exhibit 12-4
-If the government wants the economy illustrated in Exhibit 12-4 to be at full employment, it should

Name: Exhibit 12-4 -If the government wants the economy illustrated in Exhibit 12-4 to be at full employment, it should
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Question

Exhibit 12-4 
-If the government wants the economy illustrated in Exhibit 12-4 to be at full employment, it should

Quizplus · Accepted Answer

If the economy is already at full employment, none of the actions listed (increasing taxes, decreasing transfer payments, decreasing government purchases, or waiting for the SRAS curve to shift left) would be appropriate to maintain full employment.

Exhibit 12-4 -If the Government Wants the Economy Illustrated in Exhibit 12-4