Refer to Figure 24-1. Suppose the economy is currently in a short-run equilibrium with output of Yo. An appropriate fiscal policy response, to attain potential output (Y"), is an increase in corporate income taxes. a reduction in government purchases of goods and services. a decrease in personal income taxes. an increase in interest rates rencourage increased saving. a decrease in government transfer payments.

Refer to Figure 24-1. Suppose the economy is currently in a short-run equilibrium with output of Yo. An appropriate fiscal policy response, to attain potential output (Y"), is an increase in corporate income taxes. a reduction in government purchases of goods and services. a decrease in personal income taxes. an increase in interest rates rencourage increased saving. a decrease in government transfer payments.

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter13: Measuring The Economy's Performance

Section: Chapter Questions

Problem 13AA

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