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If the Actual Output Lies Below Potential Output, Then an Appropriate

Question 62

Multiple Choice

If the actual output lies below potential output, then an appropriate fiscal policy would be to _____, which will shift the _____ curve to the _____.


A) increase government purchases; AD; left
B) increase transfer payments; AS; right
C) increase tax rates; AD; right
D) increase government purchases; AD; right

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