Figure 13.1 -Refer to Figure 13.1. a Decrease in Government Spending Would

Figure 13.1

-Refer to Figure 13.1. A decrease in government spending would be most effective in reducing the price level if the economy is in equilibrium

A) when real GDP is less than Y₁.
B) when real GDP equals Y₁.
C) when real GDP is between Y₁ and Y₂.
D) when real GDP equals Y₂.
E) when real GDP equals Y₃.