Figure 15.2 -Refer to Figure 15.2. Suppose the Economy Is Currently at Currently

Multiple Choice

Figure 15.2
-Refer to Figure 15.2. Suppose the economy is currently at Point A producing potential output Y₀. If the government increases spending, the economy moves to Point _______ in the short- run and to Point _______ in the long- run.

A) B; C
B) C; B
C) B; D
D) D; E