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Figure 12.2

Question 105

Multiple Choice

Figure 12.2: Figure 12.2: -Using Figure 12.2,which fiscal policy action would increase aggregate demand from AD<sub>1</sub> to AD<sub>2</sub> ceteris paribus? A) A decrease in transfer payments B) A decrease in taxes C) A decrease in government spending D) An increase in saving
-Using Figure 12.2,which fiscal policy action would increase aggregate demand from AD1 to AD2 ceteris paribus?


A) A decrease in transfer payments
B) A decrease in taxes
C) A decrease in government spending
D) An increase in saving

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