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The Graph Shown Displays Various Economic Outcomes

Question 36

Multiple Choice

The graph shown displays various economic outcomes. The graph shown displays various economic outcomes. If the economy is currently at equilibrium B, and the government increases its spending: A) the level of output will increase. B) the economy will experience deflation. C) the unemployment rate will increase. D) All of these are likely to be true. If the economy is currently at equilibrium B, and the government increases its spending:


A) the level of output will increase.
B) the economy will experience deflation.
C) the unemployment rate will increase.
D) All of these are likely to be true.

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