Exhibit 11-6 Aggregate demand and supply model
In Exhibit 11-6, if the aggregate demand curve is at AD2, the government should:
A. raise taxes to move to AD1.
B. not change its policy.
C. cut taxes to move to AD3.
D. cut spending to move to AD3.
Answer: B
Economics
You might also like to view...
Briefly describe the following tasks of macroeconomists: forecasting; analysis; research; and data development
What will be an ideal response?
Economics
A pizza parlor's rent is
A) sunk in the long run. B) fixed in the long run. C) avoidable in the short run. D) variable in the short run.
Economics