In the above figure, which of the following policies could move the economy to potential GDP?
A. decreasing government expenditures and increasing taxes
B. decreasing taxes and not changing government expenditures
C. increasing government expenditures and decreasing taxes
D. None of the above answers is correct.
Answer:A
In the above figure, which of the following policies could move the economy to potential GDP?
A. decreasing government expenditures and increasing taxes B. decreasing taxes and not changing government expenditures C. increasing government expenditures and decreasing taxes D. None of the above answers is correct.