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Author Question: Refer to Figure 16-9.Given that the economy has moved from pointAto pointBin the graph ... (Read 132 times)

imanialler

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Question 1

Figure 16-8










Refer to Figure 16-8. In the graph above, suppose the economy in Year 1 is at point A and is expected in Year 2 to be at point B. Which of the following policies could Congress and the president use to move the economy to point C?


◦ increase government purchases
◦ decrease government purchases
◦ increase income taxes
◦ sell Treasury bills

Question 2

Figure 16-9











Refer to Figure 16-9. Given that the economy has moved from point A to point B in the graph above, which of the following would be the appropriate fiscal policy to achieve potential GDP?


◦ increase taxes
◦ increase government spending
◦ decrease the money supply
◦ increase interest rates


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Marked as best answer by imanialler on Mar 16, 2019

tranoy

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