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-The Economy Is Initially at Point a in the Figure

Question 308

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
-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

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