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If the Economy in the Graph Shown Were at Point

Question 42

Multiple Choice

If the economy in the graph shown were at point B, and the government wished to bring the economy back to its long-run equilibrium, it might: A) increase government spending. B) increase income tax. C) decrease tax credits. D) All of these would move the economy to its potential GDP from point B If the economy in the graph shown were at point B, and the government wished to bring the economy back to its long-run equilibrium, it might:


A) increase government spending.
B) increase income tax.
C) decrease tax credits.
D) All of these would move the economy to its potential GDP from point B

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