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  3. Study Set
    Principles of Macroeconomics Study Set 8
  4. Exam
    Exam 20: Aggregate Demand and Aggregate Supply: Part A
  5. Question
    Figure 33-17. -Refer to Figure 33-17.Suppose the Economy Starts at P<sub>3</sub> and at P<sub>3</sub>
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Figure 33-17. -Refer to Figure 33-17.Suppose the Economy Starts at P3 and at P3

Question 24

Question 24

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Figure 33-17. Figure 33-17.   -Refer to Figure 33-17.Suppose the economy starts at P<sub>3</sub> and Y<sub>2</sub>.Explain how government purchases would need to change to move the economy to P<sub>2</sub> and Y<sub>1</sub>.What about taxes?
-Refer to Figure 33-17.Suppose the economy starts at P3 and Y2.Explain how government purchases would need to change to move the economy to P2 and Y1.What about taxes?

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