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Refer to this figure to answer the following question. Price LRAS1 LRAS2 SRAS, level SRAS2 107 B 100 AD2 AD 0 10.2 10.6 10.8 Real
Refer to this figure to answer the following question. Price LRAS1 LRAS2 SRAS, level SRAS2 107 B 100 AD2 AD 0 10.2 10.6 10.8 Real GDP (billions of dollars) Given that the economy has moved from A to B in the graph above, which of the following would be the appropriate fiscal policy to achieve potential GDP? O a. Increase interest rates. O b. Increase taxes. O c. Decrease interest rates. O d. Increase government spending
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