Use the figure below to answer the following question(s). Figure 12-3 LRAS SRAS Price level AD Real GDP Goods and Services Market Refer to Figure 12-3. If an economy is currently operating at Y's, which of the following would a new classical economist be most likely to favor? Ova. Higher taxes and reductions in expenditures in order to shift the budget toward a surplus b. Lower taxes and increase in expenditures in order to shift the budget toward a deficit O c. A balanced budget ) d. No government action and reliance on the self-corrective mechanism