Based on the situation depicted in the graph below, which of the following would be an appropriate fiscal policy response? 
A) increase taxes
B) decrease taxes
C) decrease government purchases
D) all of the above
Correct Answer:
Verified
Q91: Which of the following helps explain how
Q92: The impact of an increase in government
Q93: The most important automatic stabilizer is:
A)open market
Q94: Which of the following is true about
Q95: Which of the following statements is not
Q97: Based on the situation depicted in the
Q98: Automatic stabilizers in the United States are:
A)changes
Q99: Expansionary fiscal policy, other things being equal,
Q100: A tax rate cut, increase in government
Q101: The crowding-out effect implies that:
A)increases in government
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