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Use the Figure Below to Answer the Following Question(s)

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Use the figure below to answer the following question(s) . Figure 12-1
Use the figure below to answer the following question(s) . Figure 12-1   Refer to Figure 12-1. If the output of the economy is Y<sub>1</sub>, which of the following would a new classical economist be most likely to favor? A)  a reduction in government expenditures B)  a reduction in taxes C)  an increase in taxes D)  continuation of the current tax and expenditure policies Refer to Figure 12-1. If the output of the economy is Y1, which of the following would a new classical economist be most likely to favor?


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