FIGURE 22-5 -Refer to Figure 22-5,Diagram 1.Which of the Following Fiscal Policy

question 120

Multiple Choice

FIGURE 22-5
-Refer to Figure 22-5,Diagram 1.Which of the following fiscal policy measures could the government implement to return national income to the full-employment level of GDP (potential output,Y*) ?

• A)reduce government spending
• B)increase transfer payments
• C)reduce taxes
• D)increase government spending
• E)increase disposable income

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