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Use the Figure Below to Answer the Following Question(s)

Question 20

Multiple Choice

Use the figure below to answer the following question(s) .
Figure 12-1 Use the figure below to answer the following question(s) . Figure 12-1 -Refer to Figure 12-1. If the output of the economy is Y<sub>1</sub>, which of the following would a new classical economist be most likely to favor? A) a reduction in government expenditures B) a reduction in taxes C) an increase in taxes D) continuation of the current tax and expenditure policies
-Refer to Figure 12-1. If the output of the economy is Y1, which of the following would a new classical economist be most likely to favor?


A) a reduction in government expenditures
B) a reduction in taxes
C) an increase in taxes
D) continuation of the current tax and expenditure policies

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