-Refer to the above figure. If the economy is currently at point C, then an increase in taxes will lead to
A) an increase in the price level and an increase in real GDP.
B) a decrease in real GDP and an increase in the price level.
C) a decrease in real GDP and a decrease in the price level.
D) a decrease in the price level and an increase in real GDP.
Correct Answer:
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Q26: According to traditional Keynesian analysis, fiscal policy
Q27: Discretionary fiscal policy is best described as
A)
Q28: Which of the following actions could be
Q29: Q30: If the economy is operating on the Q32: Keynes believed that the way to prevent Q33: Other things being equal, an increase in Q34: An example of fiscal policy is Q35: Fiscal policy includes all of the following Q36: 
A) an
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