-Refer to Exhibit 11-1

Multiple Choice

-Refer to Exhibit 11-1.The economy is currently at point 1.In this situation,supply-side economists would most likely propose _______________ to make the price level ______________ and Real GDP ___________.

A) cutting marginal tax rates; fall; rise
B) raising marginal tax rates; fall; rise
C) raising government spending; fall; rise
D) cutting government spending; rise; fall
E) cutting marginal tax rates; rise; fall