1.

Fiscal policy levers include: (Points: 1} @ Taxes 0 Banking regulations 0 Money supply 0 Interest rates PRICE 130 125 A5 120 115 no 105 mo 95 W AD'I ADE ADJ El] mmmnussmusmnsmusm REAL GDP [Billions] Using gure 1, suppose that, instead of increasing spending, the government decides to stimulate the economy by cutting taxes. To achieve the same effect as a spending increase, how large must the tax cut be? (Points: 1) 0 Less than $5 billion 0 $5 billion 0 More than $5 billion (in The answer cannot be determined without information on the marginal propensity to consume