Refer to the figure above. Suppose the economy is at Point A. A(n). O decrease in aggregate demand O increase in aggregate demand O decrease in government purchases O increase in government purchases Price level C E Aggregate can cause a movement to

Refer to the figure above. Suppose the economy is at Point A. A(n). O decrease in aggregate demand O increase in aggregate demand O decrease in government purchases O increase in government purchases Price level C E Aggregate can cause a movement to

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter24: Fiscal Policy

Section: Chapter Questions

Problem 12P

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Question

Refer to the figure above. Suppose the economy is at Point A. A(n).
O decrease in aggregate demand
O increase in aggregate demand
O decrease in government purchases
O increase in government purchases
Price level
C
E
be
B
D
AD²
Aggregate output (Y)
can cause a movement to Point B.
AD¹
ADO

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