ECONOMICS 1120181 - Figure16-8 106...

Figure 16 - 8
106) Refer to Figure 16 - 8. In the graph above, suppose the economy in Year 1 is at point A and is
expected in Year 2 to be at point B . Which of the following policies could Congress and the
president use to move the economy to point C ?
A) increase income taxes B) sell Treasury bills
C) decrease government purchases D) increase government purchases
Answer: D
106)
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Learning Outcome: Macro
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6: Explain the aggregate supply
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aggregate demand model.
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Figure 16 - 9
107) Refer to Figure 16 - 9. Given that the economy has moved from point A to point B in the graph
above, which of the following would be the appropriate fiscal policy to achieve potential GDP?
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Learning Outcome: Macro - 6: Explain the aggregate supply - aggregate demand model.
108) To combat inflation, Congress and the president should 108)
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Learning Outcome: Macro
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9: Discuss fundamental approaches to fiscal policy.
27

Figure 16 - 10
109) Refer to Figure 16 - 10. In the graph above, suppose the economy in Year 1 is at point A and is
expected in Year 2 to be at point B . Which of the following policies could Congress and the
president use to move the economy to point C ?
109)
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948/565
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566
Learning Outcome: Macro -