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Figure: Short- and Long-Run Equilibrium
-(Figure: Short- and Long-Run Equilibrium) Look at the figure Short- and Long-Run Equilibrium. If the economy is at equilibrium at E₁, the appropriate policy to return the economy to potential output is a(n) :

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Use the following to answer questions :
Figure: Short- and Long-Run Equilibrium

-(Figure: Short- and Long-Run Equilibrium) Look at the figure Short- and Long-Run Equilibrium. If the economy is at equilibrium at E₁, the appropriate policy to return the economy to potential output is a(n) :

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The Answer of Use the following to answer questions : Figure: Short- and Long-Run Equilibrium -(Figure: Short- and Long-Run Equilibrium) Look at the figure Short- and Long-Run Equilibrium. If the economy is at equilibrium at E₁, the appropriate policy to return the economy to potential output is a(n): A)increase in transfer payments. B)decrease in transfer payments. C)increase in taxes. D)decrease in government spending.

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