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Figure 11-1 -In Figure 11-1,assume That the Economy Is Originally at E₁.If

Question 41

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Figure 11-1 Figure 11-1 -In Figure 11-1,assume that the economy is originally at E₁.If the government imposes contractionary economic policies,it is likely that A) the new equilibrium will be E₃. B) the new equilibrium will be E₂. C) the price level will fall to 110. D) aggregate demand will be represented by the A D₂ line.
-In Figure 11-1,assume that the economy is originally at E₁.If the government imposes contractionary economic policies,it is likely that

A) the new equilibrium will be E₃.
B) the new equilibrium will be E₂.
C) the price level will fall to 110.
D) aggregate demand will be represented by the A D₂ line.

Correct Answer: