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The Graph Shown Displays Various Economic Outcomes

Question 21

Multiple Choice

The graph shown displays various economic outcomes. The graph shown displays various economic outcomes.   If the economy is currently at equilibrium B, and the government enacts contractionary fiscal policy, in the short run the economy will most likely: A)  move to equilibrium A. B)  remain at equilibrium B. C)  move to equilibrium C. D)  move to equilibrium D. If the economy is currently at equilibrium B, and the government enacts contractionary fiscal policy, in the short run the economy will most likely:


A) move to equilibrium A.
B) remain at equilibrium B.
C) move to equilibrium C.
D) move to equilibrium D.

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