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Question 377

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


A) increase; decrease
B) increase; maintain
C) decrease; decrease
D) decrease; maintain

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