Multiple Choice
-The economy is initially at point A in the figure. An increase in____________ will move the economy to point ____________ and then an increase in____________ will move the economy to point____________ .
A) government expenditure; D; the money wage rate; B
B) the money wage rate; B; government expenditure; C
C) the money wage rate; C; taxes; D
D) taxes; D; government expenditure; B
Correct Answer:
Verified
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