The Figure Below Shows the Aggregate Demand Curve Along with Both

question 66

Multiple Choice

The figure below shows the aggregate demand curve along with both the long-run and the short-run aggregate supply curves in an economy. The economy can move from point E₀ to E₁ through:Figure 14-1​

• A)a decrease in taxes and an increase in government purchases, other things constant.
• B)an increase in taxes and government purchases, other things constant
• C)a decrease in taxes and government purchases, other things constant.
• D)an increase in taxes and a decrease in government purchases, other things constant.
• E)an increase in taxes and an increase in the discount rate, other things constant.

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