Refer to the graphs. Assume that the economy is initially at equilibrium where AD $A D _ { 2 }$ and AS intersect
In Graph 1, and also assume that the economy is initially at point C in Graph 2. If the government
Implements a contractionary or restrictive policy, it would make the economy in graph 2
A) move from point C to point B.
B) move from point C to point A.
C) move from point C to point D.
D) remain at point C.

Question

Refer to the graphs. Assume that the economy is initially at equilibrium where AD $A D _ { 2 }$ and AS intersect
In Graph 1, and also assume that the economy is initially at point C in Graph 2. If the government
Implements a contractionary or restrictive policy, it would make the economy in graph 2
A) move from point C to point B. 
B) move from point C to point A. 
C) move from point C to point D. 
D) remain at point C.

Quizplus · Accepted Answer

The Answer of  Refer to the graphs. Assume that the economy is initially at equilibrium where AD $A D _ { 2 }$ and AS intersect
In Graph 1, and also assume that the economy is initially at point C in Graph 2. If the government
Implements a contractionary or restrictive policy, it would make the economy in graph 2
A) move from point C to point B. 
B) move from point C to point A. 
C) move from point C to point D. 
D) remain at point C.

Refer to the Graphs AD2A D _ { 2 }AD2​ And AS Intersect in Graph 1, and Also Assume That

Refer to the Graphs $A D _ { 2 }$ And AS Intersect
in Graph 1, and Also Assume That