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Exhibit 16-2 -Exhibit 16.2 Shows the Price Level, Real GDP, and Potential

Question 102

Multiple Choice

Exhibit 16-2
Exhibit 16-2 -Exhibit 16.2 shows the price level, real GDP, and potential output for an economy. According to those who favor a passive approach to policy, the economy will attain equilibrium at potential output when _____ A) the SRAS curve shifts to the left. B) the SRAS curve shifts to the right. C) government spending increases. D) the money supply increases. E) aggregate demand decreases.
-Exhibit 16.2 shows the price level, real GDP, and potential output for an economy. According to those who favor a passive approach to policy, the economy will attain equilibrium at potential output when _____


A) the SRAS curve shifts to the left.
B) the SRAS curve shifts to the right.
C) government spending increases.
D) the money supply increases.
E) aggregate demand decreases.

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