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

Question 113

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


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

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