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Use the Figure Below to Answer the Following Question(s)

Question 65

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Use the figure below to answer the following question(s) . Figure 12-2
Use the figure below to answer the following question(s) . Figure 12-2 Refer to Figure 12-2. Which of the following will most likely be favored by a new classical economist if the economy is operating at point a? A) a tax increase to balance the budget B) restrictive fiscal policy C) expansionary fiscal policy D) continuation of the current tax and expenditure policies (dependence on the economy's self-correcting mechanism to restore full employment) Refer to Figure 12-2. Which of the following will most likely be favored by a new classical economist if the economy is operating at point a?


A) a tax increase to balance the budget
B) restrictive fiscal policy
C) expansionary fiscal policy
D) continuation of the current tax and expenditure policies (dependence on the economy's self-correcting mechanism to restore full employment)

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