Price level| (GDP deflator, 2000 - 100) LRAS SRAS AD Real GDP (trillions of 2000 dollars) Refer to Figure 16-1. In the graph above, if the economy is at point A, an appropriate fiscal policy by the Congress and the president would be to lower the discount rate of interest O increase marginal income tax rates O increase government transfer payments execute an open market sale of government securities

Price level| (GDP deflator, 2000 - 100) LRAS SRAS AD Real GDP (trillions of 2000 dollars) Refer to Figure 16-1. In the graph above, if the economy is at point A, an appropriate fiscal policy by the Congress and the president would be to lower the discount rate of interest O increase marginal income tax rates O increase government transfer payments execute an open market sale of 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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