Exhibit 16-2

-Exhibit 16.2 shows the price level, real GDP, and potential output for an economy. According to those who favor a passive approach to policy, the economy will attain equilibrium at potential output when _____
A) the SRAS curve shifts to the left.
B) the SRAS curve shifts to the right.
C) government spending increases.
D) the money supply increases.
E) aggregate demand decreases.

Question

Exhibit 16-2
 
-Exhibit 16.2 shows the price level, real GDP, and potential output for an economy. According to those who favor a passive approach to policy, the economy will attain equilibrium at potential output when _____
A) the SRAS curve shifts to the left. 
B) the SRAS curve shifts to the right. 
C) government spending increases. 
D) the money supply increases. 
E) aggregate demand decreases.

Quizplus · Accepted Answer

The Answer of Exhibit 16-2
 
-Exhibit 16.2 shows the price level, real GDP, and potential output for an economy. According to those who favor a passive approach to policy, the economy will attain equilibrium at potential output when _____
A) the SRAS curve shifts to the left. 
B) the SRAS curve shifts to the right. 
C) government spending increases. 
D) the money supply increases. 
E) aggregate demand decreases.

Exhibit 16-2 -Exhibit 16.2 Shows the Price Level, Real GDP, and Potential