Figure 17.4
-In Figure 17.4,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

Figure 17.4 
-In Figure 17.4,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 Figure 17.4 
-In Figure 17.4,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.

Figure 17.4 -In Figure 17.4,if Fiscal Policy Is Successful at Moving the at Moving