Question $26$

$1$ pts

Please refer to the graph above.

Assume we begin in equilibrium at ADO and AS$.$ Ceteris paribus, which fiscal policy will lead to which final real GDP$?$

decrease taxes; $$32$

decrease government spending; $$23$

decrease taxes; $$23$

decrease government spending; $$19$

Question $26$

$1$ pts

Please refer to the graph above.

Assume we begin in equilibrium at ADO and AS$.$ Ceteris paribus, which fiscal policy will lead to which final real GDP$?$

decrease taxes; $$32$

decrease government spending; $$23$

decrease taxes; $$23$

decrease government spending; $$19$

Question $28$

$1$ p

Assume the Federal Reserve announces an FFR target range of $13\mathrm{.}00-13\mathrm{.}25.$ The current IORB rate is $12\mathrm{.}75.$ Which of these should the FOMC choose for the revised IORB rate?

$12\mathrm{.}00$

$12\mathrm{.}75$

$13\mathrm{.}25$

$13\mathrm{.}00$