Question 43 1 uits Consider a 3-sector economy for which autonomous spend ture is 1020-2009, and induced capeMuut i doY. The taniriteaid ha currenly stewie invited me Ihad expected inflation h 3%, Abco, assume that takes, government expenditure, and planned investment we all rigmon If the potential output for the economyh 2500 inrailing Elp that may exist in this econonly can be eliminated by (Please choose intech of the following can be comity L Increasing the nominal interest rate to dis It Increasing takes by 75 Ill, increasing the nominal Interest rate to 20 IV. decreasing government expenditure by 60 Both i and IV are coneer Both It and ill are correct Only IV is correct Q Both Ill and Tv Only H Is correct