Multiple Choice
Use the following to answer questions:
Figure: Fiscal Policy Options 
-(Figure: Fiscal Policy Options) Look at the figure Fiscal Policy Options. If the aggregate demand curve is AD', the most appropriate discretionary fiscal policy is to _____ government spending and _____ income tax rates.
A) increase; increase
B) increase; decrease
C) decrease; increase
D) decrease; maintain
Correct Answer:
Verified
Correct Answer:
Verified
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