Figure 12-3 -Refer to Figure 12-3. Suppose the Aggregate Demand Curve Is

question 40

Multiple Choice

Figure 12-3
-Refer to Figure 12-3. Suppose the aggregate demand curve is AD₂. All of the following events Jwould more likely bring the economy back to the natural rate of unemployment except

• A) the government orders a one-time surcharge of 10% to be added to individual income tax liabilities.
• B) the government raises business taxes.
• C) the Federal Reserve sells bonds on the open market.
• D) the government orders a cut in withholding rates designed to increase disposable income and boost consumption.

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