Refer to the above figure. Suppose the economy is at point A. By the proper use of fiscal policy, the government can
A) boost taxes to shift LRAS through point A.
B) increase government spending to get the economy to point B.
C) raise income tax rates to get the economy to point C.
D) reduce government spending to get the economy to point D.
B
Economics
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Planned investment spending is higher
A) when real interest rate is higher. B) during financial frictions. C) when businesses are optimistic. D) all of the above. E) A and C.
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One of the most effective international cartels ever formed was in
a. steel b. iron c. wheat d. rubber e. oil
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