Use the Following to Answer Questions

question 225

Multiple Choice

Use the following to answer questions:
Figure: Short-Run Equilibrium
-(Figure: Short-Run Equilibrium) Look at the figure Short-Run Equilibrium. Appropriate fiscal policy action is:

• A)a decrease in transfer payments.
• B)an increase in government purchases.
• C)a decrease in tax rates.
• D)an increase in transfer payments.