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Question 53

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Use the following to answer questions: Use the following to answer questions: -(Figure: Fiscal Policy Options) Refer to Figure: Fiscal Policy Options. If the aggregate demand curve is AD, the most appropriate discretionary fiscal policy is to _____ government spending and _____ income tax rates. A) decrease; increase B) decrease; maintain C) increase; increase D) maintain; maintain
-(Figure: Fiscal Policy Options) Refer to Figure: Fiscal Policy Options. If the aggregate demand curve is AD, the most appropriate discretionary fiscal policy is to _____ government spending and _____ income tax rates.


A) decrease; increase
B) decrease; maintain
C) increase; increase
D) maintain; maintain

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