Multiple Choice
The graph shown displays various economic outcomes. If the economy is currently at equilibrium D, to bring the economy back to its long-run equilibrium the government might:
A) decrease spending.
B) decrease income taxes.
C) increase corporate income taxes.
D) All of these would move the economy back to its long-run equilibrium from point D.
Correct Answer:

Verified
Correct Answer:
Verified
Q10: After running the numbers on a new
Q11: Fitch Ratings, a credit rating agency, recently
Q12: If the government increases the income tax
Q13: Disposable income is:<br>A) total income minus taxes.<br>B)
Q14: Sam earns $45,000 per year working at
Q16: One reason the government will enact fiscal
Q17: The government budget includes money:<br>A) coming in
Q18: Fiscal policy is often difficult to successfully
Q19: The table shown displays information about a
Q20: Who buys U.S. Treasury securities? I. U.S.