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In Figure 8

Question 90

Multiple Choice

In Figure 8.5,if equilibrium real output is Q<sub>1</sub> and full-employment real output is Q<sub>2</sub>,an appropriate monetarist policy lever would be to increase A) AD by decreasing income taxes. B) AS by increasing the money supply. C) AD by reducing interest rates. D) AD by reducing government regulations. In Figure 8.5,if equilibrium real output is Q1 and full-employment real output is Q2,an appropriate monetarist policy lever would be to increase


A) AD by decreasing income taxes.
B) AS by increasing the money supply.
C) AD by reducing interest rates.
D) AD by reducing government regulations.

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