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    Macroeconomics Study Set 49
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    Exam 26: The Keynesian Short-Run Policy Model: Demand-Side Policies
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    Refer to the Graph Shown
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Refer to the Graph Shown

Question 115

Question 115

Multiple Choice

Refer to the graph shown.If the economy is at point D, which of the following policies is most appropriate to bring the economy to potential? Refer to the graph shown.If the economy is at point D, which of the following policies is most appropriate to bring the economy to potential?   A) Cut in government spending B) Cut in taxes C) Increase in taxes D) No change in taxes or government spending


A) Cut in government spending
B) Cut in taxes
C) Increase in taxes
D) No change in taxes or government spending

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