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  3. Study Set
    Macroeconomics Principles and Policy Study Set 2
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    Exam 27: Managing Aggregate Demand: Fiscal Policy
  5. Question
    Figure 11-1 In Figure 11-1, the Slope of the Expenditures Schedule Is
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Figure 11-1 In Figure 11-1, the Slope of the Expenditures Schedule Is

Question 161

Question 161

Multiple Choice

Figure 11-1
Figure 11-1   In Figure 11-1, the slope of the expenditures schedule is 0.75, and the government wishes to achieve full employment. It should A)  cut spending by 1,000. B)  increase spending by 1,000. C)  cut taxes by 1,000. D)  increase spending by 250. E)  cut taxes by 250.
In Figure 11-1, the slope of the expenditures schedule is 0.75, and the government wishes to achieve full employment. It should


A) cut spending by 1,000.
B) increase spending by 1,000.
C) cut taxes by 1,000.
D) increase spending by 250.
E) cut taxes by 250.

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