Multiple Choice
Use the figure below to answer the following question(s) .
Figure 12-1 
-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)
Correct Answer:
Verified
Correct Answer:
Verified
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