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Use the following to answer questions:
Figure: Policy Alternatives
-(Figure: Policy Alternatives) Refer to Figure: Policy Alternatives. In panel (b) , the economy is initially in short-run equilibrium at real GDP level Y1 and price level P2. If the government decides to intervene, it will MOST likely:
Q11: Suppose that the marginal propensity to consume
Q19: Aggregate demand will shift to the RIGHT
Q54: If the government increases its spending when
Q72: According to the life-cycle hypothesis,consumers plan their
Q78: When the aggregate price level increases,the purchasing
Q111: In an open economy,government spending was $30
Q132: In 2010,many lenders refused to make more
Q165: In the long run,wages and prices are
Q201: Expansionary fiscal policies:<br>A) make the budget surplus
Q339: An increase in the prices of goods