Multiple Choice
Figure 11-4
-According to Keynesian analysis, which of the following policy combinations would most likely to move the economy illustrated in Figure 11-4 to full employment?
A) increase both taxes and government transfer payments
B) reduction in government purchases and increase in taxes
C) increase in government purchases and reduction in taxes
D) increase in taxes to reduce the government deficit
Correct Answer:

Verified
Correct Answer:
Verified
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