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The /S curve displayed in the figure on the right indicates that a decrease in the rate of interest results in an increase in output through the effect. Suppose the government decides to alter fiscal policy by reducing government spending. 1.) Using the 3-point curved line drawing tool, show how this policy affects the /S curve. Label your curve ' /S. Carefully follow the instructions above and only draw the required object..

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The /S curve displayed in the figure on the right indicates that a decrease in the rate of interest results in an increase in output through the effect. Suppose the government decides to alter fiscal policy by reducing government spending. 1.) Using the 3-point curved line drawing tool, show how this policy affects the /S curve. Label your curve ' /S. Carefully follow the instructions above and only draw the required object.

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  • 1. The /S curve displayed in the figure on the right indicates that a decrease in the rate of interest results in an increase in output through the effect. Suppose the government decides to alter fiscal policy by reducing government spending. 1.) Using the 3-point curved line drawing tool, show how this policy affects the /S curve. Label your curve ' /S. Carefully follow the instructions above and only draw the required object.