Figure 27-3 -Refer to Figure 27-3.In the Dynamic Model of AD-AS in Model

question 87

Multiple Choice

Figure 27-3

-Refer to Figure 27-3.In the dynamic model of AD-AS in the figure above,if the economy is at point A in year 1 and is expected to go to point B in year 2,Congress and the president would most likely

• A) increase the money supply and decrease the interest rate.
• B) increase taxes.
• C) increase government spending.
• D) increase oil prices.
• E) raise interest rates.

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