According to the AD-AS model, if the current level of real GDP lies below potential GDP, then

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According to the AD-AS model, if the current level of real GDP lies below potential GDP, then an appropriate fiscal policy would be to which will shift the curve to the

A) increase government purchases; AD; left.

B) increase transfer payments; AS; right.

C) increase tax rates; AD; right.

D) increase government purchases; AD; right.

E) cut interest rates; AD; right

Related Book For answer-question

Economics

ISBN: 978-1285738321

12th edition

Authors: Roger A. Arnold

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Posted Date: Oct 24, 2020 10:45 PM

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According to the AD-AS model, if the current level of real GDP lies below potential GDP, then

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