Refer to the Information Provided in Figure 26

Multiple Choice

Refer to the information provided in Figure 26.6 below to answer the question(s) that follow. Figure 26.6
-Refer to Figure 26.6. Suppose the equilibrium output is initially $600 billion. A decrease in the Z factors ________ equilibrium output and ________ the price level.

A) decreases; leaves unchanged
B) leaves unchanged; increases
C) increases; increases
D) increases; decreases