If the economy is experiencing unemployment, then the most appropriate governmen

ID: 1242489 • Letter: I

Question

If the economy is experiencing unemployment, then the most appropriate government policy would be to A. shift the aggregate demand curve by using a tax cut coupled with more spending B. shift the aggregate demand curve by using a tax increase coupled with more spending C. shift the aggregate demand curve by using a tax increase coupled with spending cuts D. shift the aggregate demand curve by using a tax cut coupled with spending cuts E. shift the aggregate supply curve by using a tax cut coupled with spending cuts

Explanation / Answer

If the economy is experiencing unemployment, then the most appropriate government policy would be to

A. shift the aggregate demand curve by using a tax cut coupled with more spending

B. shift the aggregate demand curve by using a tax increase coupled with more spending

C. shift the aggregate demand curve by using a tax increase coupled with spending cuts

D. shift the aggregate demand curve by using a tax cut coupled with spending cuts

E. shift the aggregate supply curve by using a tax cut coupled with spending cuts

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If the economy is experiencing unemployment, then the most appropriate governmen

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