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

question 118

Multiple Choice

Figure 12-3
-Refer to Figure 12-3. Suppose the aggregate demand curve is AD₁. All of the following events
Would 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) Businesses increase investment in response to tax breaks for businesses.
• C) The Federal Reserve buys bonds on the open market.
• D) The government orders a cut in withholding rates designed to increase disposable income and boost consumption.