Multiple Choice
Figure 11.1 shows the relationship between the price level and the real GDP.Which of the following sets of policies would unambiguously move the economy to full employment?
A) Increase in government purchases,increase in taxes,and decrease in transfer payments
B) Decrease in government purchases,increase in taxes,and decrease in transfer payments
C) Increase in government purchases,decrease in taxes,and increase in transfer payments
D) Increase in government purchases,increase in taxes,and increase in transfer payments
E) Decrease in government purchases,decrease in taxes,and decrease in transfer payments
Correct Answer:
Verified
Correct Answer:
Verified
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