28. Which of the following policies might provide a remedy when the equilibriun output in an economy is above the potential level of output? a. Increase government spending. b. Decrease the federal funds rate. c. Increase transfer payments. d. Raise taxes. e. Buy more government securities.

28. Which of the following policies might provide a remedy when the equilibriun output in an economy is above the potential level of output? a. Increase government spending. b. Decrease the federal funds rate. c. Increase transfer payments. d. Raise taxes. e. Buy more government securities.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

28. Which of the following policies might provide a remedy when the equilibrium
output in an economy is above the potential level of output?
a. Increase government spending.
b. Decrease the federal funds rate.
c. Increase transfer payments.
d. Raise taxes.
e. Buy more government securities.

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