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The Figure Given Below Shows the Macroeconomic Equilibria of a Country

Question 92

Multiple Choice

The figure given below shows the macroeconomic equilibria of a country.
Figure 11.1
The figure given below shows the macroeconomic equilibria of a country. Figure 11.1 -Refer to Figure 11.1. A decrease in government spending would be most effective in reducing the price level if the economy were in equilibrium: A) at point A. B) at point B. C) when real GDP equals Y<sub>1</sub>. D) when real GDP equals Y<sub>3</sub>. E) when real GDP equals Y<sub>2</sub>.
-Refer to Figure 11.1. A decrease in government spending would be most effective in reducing the price level if the economy were in equilibrium:


A) at point A.
B) at point B.
C) when real GDP equals Y1.
D) when real GDP equals Y3.
E) when real GDP equals Y2.

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