Given AD₁ and AS₁ in Figure 8

question 87

Multiple Choice

Given AD₁ and AS₁ in Figure 8.3,the classical approach to achieving full employment at an output of $300 billion would be to

• A)Increase taxes and increase government spending to shift AD₁ to AD₂.
• B)Increase the growth of the money supply to shift AD₁ to AD₂.
• C)Do nothing and wait for "natural" market forces to achieve full employment.
• D)Use all available supply-side options.

---

Definitions:

Treated Equally

The principle or practice of giving the same treatment, opportunities, and respect to all individuals, regardless of differences.

Implication

Implication refers to a conclusion or effect that is suggested or inferred, but not explicitly stated.

Industrialized Nations

Countries characterized by significant industrial activity, advanced technological infrastructure, and a higher standard of living.