FIGURE 22-5 Refer to Figure 22-5,Diagram 1

question 95

Multiple Choice

FIGURE 22-5 Refer to Figure 22-5,Diagram 1.Which of the following fiscal policy measures could the government implement to return national income to the full-employment level of GDP (potential output,Y*) ?

• A)reduce government spending
• B)increase transfer payments
• C)reduce taxes
• D)increase government spending
• E)increase disposable income

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Definitions:

Japan

An island country located in East Asia, known for its rich culture, technological advancements, and historical significance.