Refer to Figure 13.4 for the following questions.
Figure 13.4

-In Figure 13.4, if fiscal policy is successful at moving the economy from point B to equilibrium at potential GDP, which of the following will occur?
A)the price level will rise
B)deflation will occur
C)unemployment will fall
D)unemployment will rise

Question

Refer to Figure 13.4 for the following questions.
Figure 13.4
 
-In Figure 13.4, if fiscal policy is successful at moving the economy from point B to equilibrium at potential GDP, which of the following will occur?
A)the price level will rise 
B)deflation will occur 
C)unemployment will fall 
D)unemployment will rise

Quizplus · Accepted Answer

The Answer of Refer to Figure 13.4 for the following questions.
Figure 13.4
 
-In Figure 13.4, if fiscal policy is successful at moving the economy from point B to equilibrium at potential GDP, which of the following will occur?
A)the price level will rise 
B)deflation will occur 
C)unemployment will fall 
D)unemployment will rise

Refer to Figure 13.4 for the Following Questions