Refer to the diagram. If the full-employment level of GDP is D, then it would be appropriate ﬁscal policy for government to
A) decrease spending and increase taxes.
B) decrease spending and decrease taxes.
C) increase spending and increase taxes.
D) increase spending and decrease taxes.

Question

Refer to the diagram. If the full-employment level of GDP is D, then it would be appropriate ﬁscal policy for government to
A) decrease spending and increase taxes. 
B) decrease spending and decrease taxes. 
C) increase spending and increase taxes. 
D) increase spending and decrease taxes.

Quizplus · Accepted Answer

The Answer of  Refer to the diagram. If the full-employment level of GDP is D, then it would be appropriate ﬁscal policy for government to
A) decrease spending and increase taxes. 
B) decrease spending and decrease taxes. 
C) increase spending and increase taxes. 
D) increase spending and decrease taxes.

Refer to the Diagram