Price level (GDP deflator, 2000 - 100) LRAS SRAS Real GDP (trillions of 2000 dollars) In the figure above, if the economy is at point A, the appropriate fiscal policy by the US Congress and the President would be to raise income taxes. O raise interest rates lower interest rates O lower income taxes
Price level (GDP deflator, 2000 - 100) LRAS SRAS Real GDP (trillions of 2000 dollars) In the figure above, if the economy is at point A, the appropriate fiscal policy by the US Congress and the President would be to raise income taxes. O raise interest rates lower interest rates O lower income taxes
Chapter12: Federal Budgets And Public Policy
Section: Chapter Questions
Problem 3.6P
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![Price level
(GDP deflator,
2000 - 100)
LRAS
SRAS
Real GDP
(trillions of 2000 dollars)
In the figure above, if the economy is at point A, the appropriate fiscal policy by the US Congress
and the President would be to
raise income taxes.
O raise interest rates
lower interest rates
O lower income taxes](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0bd7899a-258b-43da-ac11-7efaaa9db4ea%2F5a1e0fd6-471c-4e8d-a904-0342a344dcb9%2Fsz8x12_processed.png&w=3840&q=75)
Transcribed Image Text:Price level
(GDP deflator,
2000 - 100)
LRAS
SRAS
Real GDP
(trillions of 2000 dollars)
In the figure above, if the economy is at point A, the appropriate fiscal policy by the US Congress
and the President would be to
raise income taxes.
O raise interest rates
lower interest rates
O lower income taxes
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