ECONOMICS 1120181 - Figure16-8 106 RefertoFigure16-8.Inthegraphabove, Aandis . A increaseincometaxes B sellTreasurybills C decr

ECONOMICS 1120181 - Figure16-8 106...

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Figure 16-8106)Refer to Figure 16-8.In the graph above, suppose the economy in Year 1 is at pointAand isexpected in Year 2 to be at pointB. Which of the following policies could Congress and thepresident use to move the economy to pointC? A) increase income taxesB) sell Treasury billsC) decrease government purchasesD) increase government purchasesAnswer: D 106) Page Ref: 947 - 948/565 - 566 Learning Outcome: Macro - 6: Explain the aggregate supply - aggregate demand model. 26
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Figure 16-9107)Refer to Figure 16-9.Given that the economy has moved from pointAto pointBin the graphabove, which of the following would be the appropriate fiscal policy to achieve potential GDP? Page Ref: 947 - 948/565 - 566 Learning Outcome: Macro - 6: Explain the aggregate supply - aggregate demand model. 108) To combat inflation, Congress and the president should 108) Page Ref: 947 - 948/565 - 566 Learning Outcome: Macro - 9: Discuss fundamental approaches to fiscal policy. 27
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Figure 16-10109)Refer to Figure 16-10.In the graph above, suppose the economy in Year 1 is at pointAand isexpected in Year 2 to be at pointB. Which of the following policies could Congress and thepresident use to move the economy to pointC? 109) Page Ref: 947 - 948/565 - 566 Learning Outcome: Macro -
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