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    Principles of Economics Study Set 8
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    Exam 33: Aggregate Demand and Aggregate Supply
  5. Question
    Figure 33-13 ​ ​
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Figure 33-13 ​ ​

Question 173

Question 173

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Figure 33-13
​ Figure 33-13 ​   ​ -Refer to Figure 33-13. 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 33-13. 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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