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Refer to Figure 13.1 for the Following Questions

Question 47

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Refer to Figure 13.1 for the following questions.
Figure 13.1
Refer to Figure 13.1 for the following questions. Figure 13.1 -If the economy moves from A to B in Figure 13.1, which of the following would be the appropriate fiscal policy to achieve potential GDP? A) increase taxes B) increase government spending C) contractionary fiscal policy D) decrease interest rates
-If the economy moves from A to B in Figure 13.1, which of the following would be the appropriate fiscal policy to achieve potential GDP?


A) increase taxes
B) increase government spending
C) contractionary fiscal policy
D) decrease interest rates

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