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Question: What would you recommend as an advisor to the President during times when employment is steady, stock market returns are positive, and the general price level is increasing? Question 18 options: Decrease Taxes Increase Taxes Increase Transfer Payments Decrease Spending Decrease Transfer Payment Increase Government Spending
Considering the current situation with steady employment, positive stock market returns, and increasing general price level, it indicates an economy that is doing well but might be overheating, risking inflation. Therefore, the right policy would be to "Increase Taxes." This should help cool down the economy by decreasing the aggregate demand. Remember, however, that decisions of this nature should be made carefully, considering various factors and potential impacts on different social and economic groups within the society.
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