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    Exam 13: Fiscal Policy
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    -In the Above Figure, If the Economy Is Initially at Point
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-In the Above Figure, If the Economy Is Initially at Point

Question 231

Question 231

Multiple Choice

  -In the above figure, if the economy is initially at point B and taxes are raised while potential GDP does not change, then the economy will A)  move to point C. B)  move to point A. C)  move to point D. D)  stay at point B.
-In the above figure, if the economy is initially at point B and taxes are raised while potential GDP does not change, then the economy will


A) move to point C.
B) move to point A.
C) move to point D.
D) stay at point B.

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