Refer to the graphs above. Assume that the economy is initially at equilibrium where AD₂ and AS intersect in Graph 1, and also assume that the economy is initially at point C in Graph 2. If the government implements contractionary or restrictive policy, it would make the economy in graph 2 to: A) Move from point C to point B B) Move from point C to point A C) Move from point C to point D D) Remain at point C

Question

Quizplus · Accepted Answer

The Answer of Refer to the graphs above. Assume that the economy is initially at equilibrium where AD₂ and AS intersect in Graph 1, and also assume that the economy is initially at point C in Graph 2. If the government implements contractionary or restrictive policy, it would make the economy in graph 2 to: A) Move from point C to point B B) Move from point C to point A C) Move from point C to point D D) Remain at point C

Refer to the Graphs Above