A Supply-Side Policy Approach in Figure 8

question 141

Multiple Choice

A supply-side policy approach in Figure 8.3,given AD₁ and AS₁,to achieve both lower prices and more output would be to

• A)Increase the growth of the money supply.
• B)Reduce marginal tax rates and government regulation in an effort to move AS₁ to AS₂
• C)Wait until natural market forces establish full employment.
• D)Increase aggregate spending.

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