Refer to Figure 16-2. In the graph above, if the economy is at point A, an appropriate fiscal policy by Congress and the president would be to
A) execute an open market sale of government securities.
B) increase marginal income tax rates.
C) increase government transfer payments.
D) lower the discount rate of interest.
C
Economics
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The level of GDP at which planned expenditure equals the amount of output produced is the
A) equilibrium output. B) potential output. C) long-run output. D) autonomous output.
Economics
In the above figure, to achieve efficiency, the government should
A) impose a tax of $2 per unit. B) impose a tax of $3 per unit. C) offer a subsidy of $2 per unit. D) offer a subsidy of $3 per unit.
Economics