Figure 16-8 -Refer to Figure 16-8.In the Graph Above,suppose the Economy in the Economy

Multiple Choice

Figure 16-8
-Refer to Figure 16-8.In the graph above,suppose the economy in Year 1 is at point A and is expected in Year 2 to be at point B.Which of the following policies could Congress and the president use to move the economy to point C?

A) increase government purchases
B) decrease government purchases
C) increase income taxes
D) sell Treasury bills