Business, 31.07.2019 05:20 tatianna341

Consider the figures to the right. which of the following combinations of specific fiscal policy will return the economy to long-run macroeconomic equilibrium (point c)? that is, what policy will move aggregate demand from ad 2 to ad subscript 2 comma left parenthesis policy right parenthesis in the second period? a. example (a): decrease government spending example (b): decrease government spending b. example (a): decrease government spending example (b): decrease taxes c. example (a): increase government spending example (b): increase taxes d. example (a): increase taxes example (b): increase government spending

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Consider the figures to the right. which of the following combinations of specific fiscal policy wil...

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