Multiple Choice
The graph shown displays various economic outcomes. If fiscal policy moves the economy from equilibrium A to equilibrium B:
A) the economy has not been restored to its full potential output.
B) the economy has been restored to its full potential output.
C) the economy has overheated and equilibrium has pushed output beyond its potential.
D) unemployment has increased.
Correct Answer:

Verified
Correct Answer:
Verified
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