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Refer to Figure 16.1

Question 129

Multiple Choice

Refer to Figure 16.1. Refer to Figure 16.1. -Refer to Figure 16.1.If the economy is initially in equilibrium at P<sub>3</sub> and Q<sub>2</sub>,the appropriate policy to move the economy to an equilibrium at P<sub>2</sub> and Q<sub>3</sub> would be to reduce: A) Increase immigration barriers. B) Increase the marginal tax rate. C) Increase government spending. D) Reduce government regulation.
-Refer to Figure 16.1.If the economy is initially in equilibrium at P3 and Q2,the appropriate policy to move the economy to an equilibrium at P2 and Q3 would be to reduce:


A) Increase immigration barriers.
B) Increase the marginal tax rate.
C) Increase government spending.
D) Reduce government regulation.

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