Use the Following to Answer Questions

question 55

Multiple Choice

Use the following to answer questions .
Exhibit: Inflation and Unemployment 1
-(Exhibit: Inflation and Unemployment 1) Consider point B where unemployment is relatively high and inflation is relatively low. In order to move up the curve toward point A, what fiscal policy measures should the policymakers undertake?

• A) Decrease taxes and government spending
• B) Increase taxes and government spending
• C) Increase taxes and decrease government spending
• D) Decrease taxes and increase government spending

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