Figure 11-4 -According to Keynesian Analysis, Which of the Following Policy Combinations

question 11

Multiple Choice

Figure 11-4
-According to Keynesian analysis, which of the following policy combinations would most likely to move the economy illustrated in Figure 11-4 to full employment?

• A)increase both taxes and government transfer payments
• B)reduction in government purchases and increase in taxes
• C)increase in government purchases and reduction in taxes
• D)increase in taxes to reduce the government deficit

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