An economy has an equilibrium level of real output Y, but wishes to move towards its full employment level of real output ${Y_{FE}}$.
Which combination of policy measures is most likely to achieve this wish without high inflation?
decreasing interest rates and raising investment in new technology
2 )
decreasing the money supply and raising corporation tax rates
3 )
increasing interest rates and raising income tax thresholds
4 )
increasing the money supply and raising welfare benefit payments
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