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Price level AD Potential GDP Yfull AS Real GDP Consider the economy represented by the AD/AS diagram above, where the economy is not at full employment (Yfull). Which policy would be one that a Keynesian economist might suggest to the government? O A. Reduce government spending on bridges and roads OC. Increase taxes on consumers OB. Decrease tariffs (taxes on imports) D. Decrease the rent because the rent is too high E. Government building of a new bridge to an island off the coast of Maryland

Price level AD Potential GDP Yfull AS Real GDP Consider the economy represented by the AD/AS diagram above, where the economy is not at full employment (Yfull). Which policy would be one that a Keynesian economist might suggest to the government? O A. Reduce government spending on bridges and roads OC. Increase taxes on consumers OB. Decrease tariffs (taxes on imports) D. Decrease the rent because the rent is too high E. Government building of a new bridge to an island off the coast of Maryland

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Price level AD Potential GDP Yfull AS Real GDP Consider the economy represented by the AD/AS diagram above, where the economy is not at full employment (Yfull). Which policy would be one that a Keynesian economist might suggest to the government? O A. Reduce government spending on bridges and roads OC. Increase taxes on consumers OB. Decrease tariffs (taxes on imports) D. Decrease the rent because the rent is too high E. Government building of a new bridge to an island off the coast of Maryland
Transcribed Image Text:Price level AD Potential GDP Yfull AS Real GDP Consider the economy represented by the AD/AS diagram above, where the economy is not at full employment (Yfull). Which policy would be one that a Keynesian economist might suggest to the government? O A. Reduce government spending on bridges and roads OC. Increase taxes on consumers OB. Decrease tariffs (taxes on imports) D. Decrease the rent because the rent is too high E. Government building of a new bridge to an island off the coast of Maryland
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