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Refer to Figure 18.1 for the Following Questions

question 44

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Refer to Figure 18.1 for the following questions.
Figure 18.1 Refer to Figure 18.1 for the following questions. Figure 18.1   -If the economy moves from A to B in Figure 18.1,which of the following would be the appropriate fiscal policy to achieve potential GDP? A)  Increase taxes B)  Increase government spending C)  Contractionary fiscal policy D)  Decrease interest rates
-If the economy moves from A to B in Figure 18.1,which of the following would be the appropriate fiscal policy to achieve potential GDP?


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