Exhibit 11-2
-If the government wants the economy illustrated in Exhibit 11-2 to be at full employment,it should

Question

Exhibit 11-2 
-If the government wants the economy illustrated in Exhibit 11-2 to be at full employment,it should

Quizplus · Accepted Answer

None of the options A, B, C, or D would directly lead to full employment. Increasing taxes, decreasing transfer payments, and decreasing government purchases would likely reduce aggregate demand, potentially moving the economy further from full employment. Waiting for the SRAS curve to shift left would indicate a reduction in supply, which is not desirable for achieving full employment.

Exhibit 11-2 -If the Government Wants the Economy Illustrated in Exhibit 11-2