Use the following to answer questions:
Figure: Short-Run Equilibrium 
-(Figure: Short-Run Equilibrium) Look at the figure Short-Run Equilibrium. Appropriate fiscal policy action is:
A) a decrease in transfer payments.
B) an increase in government purchases.
C) a decrease in tax rates.
D) an increase in transfer payments.
Correct Answer:
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Q8: If the actual output lies below potential
Q23: Use the following to answer questions :
Figure:
Q24: Use the following to answer questions:
Figure: Short-
Q25: Use the following to answer questions :
Figure:
Q28: Suppose the economy is in a recessionary
Q30: Suppose the economy is in an inflationary
Q31: Use the following to answer questions:
Figure: Short-Run
Q32: Use the following to answer questions:
Figure: Short-Run
Q34: If the economy is at equilibrium below
Q36: Expansionary fiscal policy:
A) increases long-run aggregate supply.
B)
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