-In the above figure, if the economy is initially at point D and taxes are cut, if potential GDP does not change then the economy will move to point
A) stay at point D.
B) move to point B.
C) move to point A.
D) move to point C.

Question

-In the above figure, if the economy is initially at point D and taxes are cut, if potential GDP does not change then the economy will move to point
A) stay at point D. 
B) move to point B. 
C) move to point A. 
D) move to point C.

Quizplus · Accepted Answer

The Answer of 
-In the above figure, if the economy is initially at point D and taxes are cut, if potential GDP does not change then the economy will move to point
A) stay at point D. 
B) move to point B. 
C) move to point A. 
D) move to point C.

-In the Above Figure, If the Economy Is Initially at Point