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Author Question: Refer to Figure 16-7.Given that the economy has moved fromAtoBin the graph above, which ... (Read 97 times)

luminitza

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Question 1

Figure 16-6











Refer to Figure 16-6.  In the dynamic model of AD-AS in the figure above, if the economy is at point A in year 1 and is expected to go to point B in year 2, Congress and the president would most likely pursue


◦ expansionary fiscal policy.
◦ contractionary fiscal policy.
◦ expansionary monetary policy.
◦ contractionary monetary policy.
◦ expansionary automatic stabilizers.

Question 2

Figure 16-7











Refer to Figure 16-7. Given that the economy has moved from A to B in the graph above, which of the following would be the appropriate fiscal policy to achieve potential GDP?


◦ increase taxes
◦ increase government spending
◦ contractionary fiscal policy
◦ decrease interest rates


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Marked as best answer by luminitza on Mar 16, 2019

Ashley I

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luminitza

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Reply 2 on: Mar 16, 2019
:D TYSM


shewald78

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Reply 3 on: Yesterday
Gracias!

 

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