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Assume the economy is operating beyond the full-employment output level, as shown in the graph below. The government want to use contractionary fiscal policy
Assume the economy is operating beyond the full-employment output level, as shown in the graph below. The government want to use contractionary fiscal policy to correct the situation. Drag the appropriate line to the correct position to show the change. To refer to the graphing tutorial for this question type, please click here. Price Level 16 15 14 22 13 12 11 10 9 B 10 12 SRASI N 2 . LRAS 1 o AD1 10 12 11 15 14
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