Use the following to answer questions: 
-(Figure: Fiscal Policy Options) Refer to Figure: Fiscal Policy Options. If the aggregate demand curve is ADʺ, the most appropriate discretionary fiscal policy is to _____ government transfer payments and _____ income tax rates.
Definitions:
Q5: The budget balance equals:<br>A) taxes plus government
Q26: The liquidity preference model focuses on interest
Q29: (Figure: Short- and Long-Run Equilibrium) Refer to
Q30: Sources of federal tax revenue do NOT
Q69: (Figure: Money Market I) Refer to Figure:
Q83: Which asset is NOT included in M1?<br>A)
Q85: The short-run aggregate supply curve is _,
Q145: (Figure: Policy Alternatives) Refer to Figure: Policy
Q272: When the aggregate price level increases, the
Q314: National savings equals:<br>A) private savings plus consumption