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Exhibit 16-2 -Refer to Exhibit 16.2, Which Shows the Price Level, Real

Question 90

Multiple Choice

Exhibit 16-2
Exhibit 16-2 -Refer to Exhibit 16.2, which shows the price level, real GDP, and potential output for an economy. According to those who favor an active approach to policy, the economy can attain equilibrium at potential output if _____ A) the SRAS curve shifts to the left. B) the SRAS curve shifts to the right. C) money supply remains constant. D) government spending is decreased. E) aggregate demand increases.
-Refer to Exhibit 16.2, which shows the price level, real GDP, and potential output for an economy. According to those who favor an active approach to policy, the economy can attain equilibrium at potential output if _____


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

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