Price level (GOP deflator 2000-1000 X lower interest rates In the figure above, if the economy is at point A, the appropriate fiscal policy by the US Congress and the President would be to raise income taxes. Real GDP raise interest rates lower income taxes of 200

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter24: Fiscal Policy
Section: Chapter Questions
Problem 6P
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Question
D
Question 9
Price level
(GOP deflator
2000-1000
LAAS
X
lower interest rates
In the figure above, if the economy is at point A, the appropriate fiscal policy
by the US Congress and the President would be to
raise income taxes.
raise interest rates
SPAS
lower income taxes
Real GDP
ons of 2000)
Next ▸
Transcribed Image Text:D Question 9 Price level (GOP deflator 2000-1000 LAAS X lower interest rates In the figure above, if the economy is at point A, the appropriate fiscal policy by the US Congress and the President would be to raise income taxes. raise interest rates SPAS lower income taxes Real GDP ons of 2000) Next ▸
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