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Refer to Figure 13.4 for the Following Questions

Question 8

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Refer to Figure 13.4 for the following questions.
Figure 13.4
Refer to Figure 13.4 for the following questions. Figure 13.4 -Given that the economy has moved from A to B in Figure 13.4, which of the following would be the appropriate fiscal policy to achieve potential GDP? A) decrease taxes B) decrease government spending C) expansionary fiscal policy D) increase interest rates
-Given that the economy has moved from A to B in Figure 13.4, which of the following would be the appropriate fiscal policy to achieve potential GDP?


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

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