An economy is currently at an equilibrium level of real output Y, yet it aims to shift towards its full employment level of real output YFE. Which mix of policy measures is most likely to bring about this aim without generating high inflation?
- Adecreasing interest rates and raising investment in new technology
- Bdecreasing the money supply and raising corporation tax rates
- Cincreasing interest rates and raising income tax thresholds
- Dincreasing the money supply and raising welfare benefit payments