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Question 286

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Figure: Inflationary and Recessionary Gaps Use the following to answer questions: Figure: Inflationary and Recessionary Gaps -(Figure: Inflationary and Recessionary Gaps) Look at the figure Inflationary and Recessionary Gaps. A movement from AD<sub>1</sub> to AD<sub>3</sub> could be caused by: A) increased government purchases. B) decreased government transfers. C) higher tax rates. D) decreased government purchases.
-(Figure: Inflationary and Recessionary Gaps) Look at the figure Inflationary and Recessionary Gaps. A movement from AD1 to AD3 could be caused by:


A) increased government purchases.
B) decreased government transfers.
C) higher tax rates.
D) decreased government purchases.

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