Use the figure below to answer the following question(s). Figure 12-1 Refer to Figure 12-1. If the output of the economy is Y₁, which of the following would a new classical economist be most likely to favor? A) a reduction in government expenditures B) a reduction in taxes C) an increase in taxes D) continuation of the current tax and expenditure policies

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The Answer of Use the figure below to answer the following question(s). Figure 12-1 Refer to Figure 12-1. If the output of the economy is Y₁, which of the following would a new classical economist be most likely to favor? A) a reduction in government expenditures B) a reduction in taxes C) an increase in taxes D) continuation of the current tax and expenditure policies

Use the Figure Below to Answer the Following Question(s)