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Figure 12-2 -Refer to Figure 12-2. Suppose Real GDP Is Equal to Is

question 108

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Figure 12-2 Figure 12-2   -Refer to Figure 12-2. Suppose real GDP is equal to Y<sub>r</sub>. If policymakers want to close the output gap with demand management policies, what should they do? A)  lower corporate profit tax rates to encourage investments B)  increase investment tax credits to businesses C)  decrease government spending on transfer payments and on final goods and services D)  lower interest rates
-Refer to Figure 12-2. Suppose real GDP is equal to Yr. If policymakers want to close the output gap with demand management policies, what should they do?


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