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For the Economy Depicted in the Diagram Below,which of the Following

Question 40

Multiple Choice

For the economy depicted in the diagram below,which of the following policy actions would eliminate the output gap? For the economy depicted in the diagram below,which of the following policy actions would eliminate the output gap? A) An income tax increase. B) An interest rate increase. C) A cut in government transfer payments. D) A decrease in government purchases. E) An income tax decreasE.


A) An income tax increase.
B) An interest rate increase.
C) A cut in government transfer payments.
D) A decrease in government purchases.
E) An income tax decreasE.

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