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AP® Macroeconomics

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Effective Fiscal Policy and AD/AS

APMACR-KECEYE

Which of the following Fiscal actions will have the BEST impact on correcting an economy in a mild recession?

A

Increased Taxes.

B

Increased minimum wage.

C

Decrease Government purchases to offer a middle class tax break with the savings.

D

Increase Government purchases of goods and services.

E

Reduce business subsidies.