Figure 12-3 -Refer to Figure 12-3.Suppose the Aggregate Demand Curve Is AD₂.

question 25

Multiple Choice

Figure 12-3

-Refer to Figure 12-3.Suppose the aggregate demand curve is AD₂. All of the following events
Would bring the economy back to the natural rate of unemployment except

• A)the government orders a one-time surcharge of 10% to be added to individual income tax liabilities.
• B)the government raises business taxes.
• C)the Federal Reserve sells bonds on the open market.
• D)the government orders a cut in withholding rates designed to increase disposable income and boost consumption.

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