Multiple Choice
Refer to the graphs. Assume that the economy is initially at equilibrium where AD and AS intersect
In Graph 1, and also assume that the economy is initially at point C in Graph 2. If the government
Implements a contractionary or restrictive policy, it would make the economy in graph 2
A) move from point C to point B.
B) move from point C to point A.
C) move from point C to point D.
D) remain at point C.
Correct Answer:

Verified
Correct Answer:
Verified
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