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If the Economy in the Graph Shown Is Currently at Point

Question 60

Multiple Choice

  If the economy in the graph shown is currently at point B, and the government enacts contractionary fiscal policy, in the short run the economy will most likely move to point: A)  A B)  It is likely to be unaffected and stay at point B C)  C D)  D If the economy in the graph shown is currently at point B, and the government enacts contractionary fiscal policy, in the short run the economy will most likely move to point:


A) A
B) It is likely to be unaffected and stay at point B
C) C
D) D

Correct Answer:

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