Multiple Choice
The figure given below depicts long run equilibrium in an aggregate demand-aggregate supply model. The change in real GDP in this figure from Y1 to Y2 could have been caused by:
A) a government policy aimed at increasing demand.
B) a change in weather conditions that led to worldwide crop failures.
C) an attempt by key resource producers to monopolize supply.
D) an increase in taxation or a decrease in government spending.
E) an increase in labor productivity.
Correct Answer:
Verified
Correct Answer:
Verified
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