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Figure 111 Shows the Relationship Between the Price Level and the the Real

Question 43

Multiple Choice

Figure 11.1 shows the relationship between the price level and the real GDP.If the government wants the economy to be at full employment,it should _____.
Figure 11.1 shows the relationship between the price level and the real GDP.If the government wants the economy to be at full employment,it should _____. A) increase taxes B) decrease transfer payments C) decrease government purchases D) wait for the SRAS curve to shift to the left E) increase its purchases


A) increase taxes
B) decrease transfer payments
C) decrease government purchases
D) wait for the SRAS curve to shift to the left
E) increase its purchases

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