In Figure 8.5, if equilibrium real output is Q1 and full-employment real output is Q2, an appropriate monetarist policy lever would be to increase
A. AS by increasing the money supply.
B. AD by reducing government regulations.
C. AD by reducing interest rates.
D. AD by decreasing income taxes.
Answer: C
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A. total; average B. variable; average C. total; marginal D. variable; marginal
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Answer the following statement true (T) or false (F)
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