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If the economy is in equilibrium at point B and full employment output is at point A, the most appropriate fiscal policy would be

Sagot :

The most appropriate fiscal policy would be to increase government purchases.

What is fiscal policy?

It should be noted that the fiscal policy means the use of government taxation in order to influence the economy.

In this case, when the economy is in equilibrium at point B and full employment output is at point A, the most appropriate fiscal policy would be an expansionary fiscal policy.

Expansionary fiscal policy is used to increase the money supply in the economy.

The question was answered based on the information given.

Learn more about fiscall policy on:

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